Burnout – Threat to Businesses
Burnout is one of the reasons that drives long-term business owners to retire from their businesses and move on with life. Even though some buyers may have trouble accepting burnout as a valid reason for sale, losing passion and drive is considered perfectly natural.
Success of the business is not necessarily an important indicator in predicting burnout. It can be experienced at the highest heights or the lowest lows of your business. Quite conversely, many owners can feel that now, when they are on top of the game, is a good to cash out and leave before the burnout gets any chance to endanger the business.
It is important for business sellers to be aware of the burnout as its early diagnosis can prevent the business from plummeting down. Some of the indicators of burnout are:
Being Overwhelmed on a Daily Basis
Oftentimes, small or one-man businesses can put a lot of pressure on the owner as there are many tasks to be completed and decisions to be made. All of these can pile up over time and take toll on the passion and energy of the owner, especially if left untreated.
Lack of Imagination
Business owners dealing with the same work for a long period of time tend to start losing perspective. Problem solving starts to look like an application of Band-Aids rather than innovating and the long-term vision and profitability takes a nose dive or stagnates.
Lack of Joy
As in the employment world, even business owners can experience a lack of enjoyment. What once used to fulfil them they now dread or are bored of and it sends out a strong signal that a change might be required.
Exhaustion Sets In
It is no secret that running a business puts a constant demand on the owner’s time and energy regardless of whether the business is thriving or barely surviving. The busy schedule is not for everyone and once owners hit the threshold, it may be time to step out and make a change.