I can’t decide: the money or the business?

Dear Aunty B,

I am in my mid-50s and I always thought that the sale of my business would fund my retirement. It has always been a struggle but I also always thought it was going to get better.

My problem is I have been approached by a buyer who I think will end up offering a fair price for the business (about $400,000) as it is now. Should I hold on and try to build up its value or take the money and do something else?

In two minds,
Moorabbin

Dear In Two Minds,

Take the money and do something else. You are in your mid-50s you say and it has always been a struggle. What happens if you do reach the stage where you want to retire and it has still been a struggle and your buyer isn’t there, on tap, holding money out to you on a platter?

Now like me, you are an optimist and I often tell entrepreneurs – well usually tell entrepreneurs, to keep going, to keep building the value and that it is too early to quit. But in your case you don’t want to end up burnt out, still struggling, selling in a hurry and getting a fire sale price.

Let’s look at it this way. Let’s say you sell the business for $400,000. What are you taking from the business now? About $100,000 if you say it is struggling? You could probably get a job for $100,000. Plus you are a few hundred thousand better off after the sale.

You know on occasion I reckon that we small business owners get too attached to our businesses. Life is short!

Good luck,
Your Aunty B

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