The Tenney Group is not in the business of motivating trucking business owners to sell their trucking businesses. That would be a waste of time for everyone.
Very rarely is a “potential” sale price the sole driving factor for someone’s decision to sell a trucking or third party logistics business. It is certainly an influencer. But unless something else is going on with a business owner’s priorities or career goals, it is rarely powerful enough to convince a business owner to sell what is likely their greatest financial asset.
So what else should trucking business owners consider as they evaluate a possible decision to sell? The greatest advice I could probably offer is to encourage you to resist evaluating your possible sale strictly on the sale price your business may attract.
A better approach is to evaluate how selling your trucking business can be used as a vehicle to enhance your financial outlook for the future and future quality of life.
Below are four questions to explore carefully.
How will eliminating my debt allow me to experience more financial freedom, less anxiety, and a better quality of life?
Debt, which is very common in this industry, can deplete the creative imaginations of entrepreneurs. Once freed from the chains of debt, many entrepreneurs are able to unleash powerful ideas and their full earning potential.
How can my “newfound time and energy” be applied in a more financially productive way following a transaction?
I have said it many times. If you can succeed in the transportation industry, you can do anything. It is not uncommon for trucking business owners to discover that the work ethic required for them to merely compete in the trucking industry is what allows them to “thrive” in other industries.
In what ways can I invest the proceeds/lump sum from my business sale to transform the overall financial reward I receive as a result of selling my trucking business?
Many small trucking business owners started their businesses from scratch. They have worked their tails off along the way. Few have had an opportunity to have a large sum of money work for them. Once you have your business appraised, get with a financial planner and investment adviser to discover the full scope of what you can accomplish through a business sale.
Is continuing to invest my time and energy into the business going to produce a more meaningful return on investment in the future?
It is possible that the offers your business is likely to attract in the open market may not excite you. Unless you plan to make changes that will transform a sale result in the future, it can be difficult to find financial justification for “not” taking your chips off the table. Fact: I have never met a trucking business owner that has said “I sold my business too soon.” Yet I know hundreds who have said they exact opposite.
When you start considering a sale, do not limit your decision making process to a “potential” sale price your business may attract. Finding out how you can use your trucking business sale as a vehicle to improve your financial outlook for the future is a more comprehensive approach that will allow you to make a more educated and timely decision.