Making your decision

Let's return to the initial question. When should you sell your Amazon FBA business?

There's no one-size-fits-all answer, but now you have the factors to consider. It's all about balancing the risks of continuing to operate against what you can achieve by selling. Let's break it down:

First, revisit your goals. Have you reached your net worth target? Is it time to lower your level of risk? Do you need money to pay off debts? Consider whether you still love selling on Amazon or if it's time for something new.

Next, consider your and your family's health. Does it impact your ability to run the business effectively?

Analyze the business factors by calculating your business valuation and assessing its performance. Determine how these factors affect your ability to reach your goals. Also, look at external factors like the FBA business market, but try not to stress too much about things you can't control.

Finally, plan your timeline. How long will it take to prepare everything for sale? This timeline should be long enough to organize everything, fix potential "deal killers," increase your company's valuation (if that's a goal), and prepare you mentally for the sale process.

You should assume that your timeline will require at least three months to get ready, and possibly significantly longer if you're aiming for specific financial goals. You'll get a more accurate estimate in the preparation module.

When did we sell our business?

We had set a goal of achieving a specific business valuation and thought we had 12-18 months remaining to reach it. But a serious buyer approached us with an offer far closer to our target than we expected. After a few late-night discussions, we decided to sell earlier than planned, trading potential future upside for the safety of immediate money.

This decision had consequences. We had minimal time to prepare and felt stressed as we juggled the sale and ongoing business operations, which resulted in some expensive mistakes. But despite these challenges, we're still happy with our decision. The FBA market changed after we exited, and valuations dropped. If we'd waited, we might have needed another 12-18 months of growth to achieve the same outcome.

Next Steps

Now that you understand the factors influencing when to sell, we'll look at how to prepare your FBA business for sale in the next module.

Remember, there's no perfect time to sell. Balance your goals, health considerations, and business factors. Give yourself enough time to prepare, but be ready to adjust your timeline if a good opportunity arises.

By considering all these factors, you'll be better equipped to make an informed decision about when to sell your Amazon FBA business. Stay flexible and keep your goals in mind as you navigate this process.