Obviously there are a number of factors to consider. Let’s first look OUTWARD.

How does the economy effect selling a business?

Stock Market: This month, November 2009, the stock market is hovering around 10,000. This is a magic number but does it affect the economy? Not really but it does affect people’s mindset. From a buyers stand point, many who had heavily invested their retirement funds in the stock market can now at their portfolios and realize that they are certainly not as bad looking as what they were a year ago.

Unemployment: Right now the unemployment rate is at the highest it’s been in literally in 25 years. Every month, hundreds of thousands of people are being laid off. It’s getting worse, not getting better, from a stand point of unemployment. Yet our stock market is on the rise and in some ways it doesn’t make sense. However this helps you, the small business owner. Why? Because when upper level executives lose their job and they typically are unable to locate a new one that can provide them with the level of income they are use to earning. What do they do? They begin looking to start or buy their own business.

Entrepreneurialism rises when unemployment rises. In fact, this may be exactly where you are currently at as a business owner – a place in your life where you are considering the sale of your business so you can pursue another business idea. You may be an entrepreneur looking simply to do something different. Can it be the perfect time to do that? ABSOLUTELY. Even if you’re looking to retire!

If we are to consider the timing of selling a business, we would be remiss if we did not mention the issues and the criteria need that are more INWARD. The characteristics of the business itself.

Systems: I am not talking about the idea of your business having so many systems that you could create a franchise. But you should have a system in place (even if not written) for how things get done. In fact, things should get done when you are not THERE. If you are the only person doing the work or it requires you to be there 100% of the time in order to get ANY thing done, maybe this is not the time to sale. Are you able to leave without the business falling apart?

Business: Is business going well or are you almost bankrupt? 90% of all small businesses are down in 2009. There is a difference if your business is down and if you want to sell because you can’t stay afloat. If this is the case, it is possible that you may need to keep the business a little longer to insure viability. If your business is only off a 10% to 20%, then it is still possible to sell in 2009/2010.

So IS IT the right time to sell your business?

You put your blood, sweat and tears into your business. Only you can determine if the right time to sell is NOW. Typically it takes 6 to 12 months to sell a business. If you believe the timing to sell your business is right around the corner, NOW may be the time to start the process. You can find the right advocate for you. Someone who can help you get the right deal so you can move forward, taking this investment – called your business – and turn it into a retirement fund, or capital for a new venture, or into whatever you want to do in the next stage of your life. This can be the perfect time to sell your business.