As the world continues to evolve and technology advances, small business owners may find it difficult to keep up with the changes and adapt their operations to stay competitive. This can be a significant burden on the business owner, both financially and mentally, and can lead to burnout and stress.
Selling your business in 2023 may be a good option for those who are struggling to keep up with these changes and are ready to move on to new opportunities. Additionally, selling your business in 2023 can also provide a valuable exit strategy for those who have been in the business for a long time and are ready to retire or pursue other interests.
Here are three potential benefits to consider for selling your business this year:
The strength of small businesses has been put to the test since 2020, and 2021 and 2022 saw a surge in buyer demand for companies that have managed to survive the economic pressure. According to data from the National Small Business Association, small businesses make up 99.7% of all employer firms, and in 2020, more than 70% of small businesses reported a negative impact on their operations due to the pandemic. However, the good news for owners who have not yet sold is that not every buyer found the deal or the business they wanted in 2022, and demand for businesses with solid financials remains high.
One reason you may want to sell in the new year is the current labor shortage. The labor shortage among small businesses has been widely documented, and no sector has been left untouched. According to a 2021 survey conducted by Forbes, approximately 79% of small business owners surveyed were working more hours to overcome staffing issues. Additionally, data from the Bureau of Labor Statistics shows that the unemployment rate for small business owners is still higher than pre-pandemic levels, with 7.5% of small business owners unemployed in December 2022, compared to 2.6% in February 2020.
On top of the continued labor shortage, many small business owners are having to adapt to major operational changes, primarily the shift to a more digital environment. According to a survey conducted by the National Retail Federation, more than 70% of small business owners reported that they had to increase their online presence and e-commerce capabilities as a result of the pandemic. Additionally, data from the Small Business Administration shows that small business owners have taken out more than $800 billion in Paycheck Protection Program loans to help cover expenses and retain employees during the pandemic.
