For the last nine to 12 months I’ve been writing and saying business owners have their heads in the sand. One of my common lines is business owners think, “Recession, what recession? These good times won’t end.”
Now I don’t think the economy is in big trouble but the stock market’s violent correction is sure to spook some people (especially those who bought high and panicked, selling low).
But it should be a wake-up call to business owners who’ve been meaning to sell but just can’t let go, because the good times will continue to roll. Here’s some news, the economy goes in cycles. Always has, always will. It’s one of the only things I remember from all my economics classes (just kidding, it’s one of the few things).
If I was thinking of selling a business in the next two years, I’d be preparing it now (guess what? I have a book on the subject), moving before too many others decide to sell, and before the economy corrects itself, as it usually does after an election. It’s not that the economy will lower your profits but it may (will) spook buyers and banks. Plus, if interest rates go up values may go down.