Knowing When it’s Time to Sell or Close your Petrol Station
It can be difficult to know when the right moment is to sell or close a petrol station. While each person must make this decision on their own, there are a few things worth considering to see if it’s time.
What are your motivations for wanting to sell or close your petrol station? Are you in a situation where you can hold out for the right moment? Or are you rushing to sell or close your petrol station?
These questions and more make a huge difference in ensuring that you don’t regret your decision later. Often people find themselves getting anxious to complete the transaction and they rush it along even though it isn’t the right deal.
On the flip side, if the business is doing poorly but your motivation is still strong to make it profitable, that is worth consideration. Even if it ultimately winds up being the right time to sell or close anyway, it’s worth considering how much you actually want this to be the case.
Is your service station profitable?
If your service station is still profitable, even by a minor margin, this is extremely important. When dealing with selling your service station, this is a major selling point. Proof of a petrol station’s profitability can serve to increase the asking price for the business.
Conversely, if there is no profitability in the petrol station, it may be time to shut the doors. Not maintaining a profit doesn’t necessarily mean that there isn’t still value in the business but it can show that it might be worth it to shut down even if there isn’t a buyer already lined up.
Is your petrol station marketable?
If you’re considering selling your service station, marketability should absolutely be considered in the pricing of it. If your petrol station isn’t marketable, it might be wise to spend some time cultivating that before selling–even if it’s profitable!
Sometimes, signs that a business needs to be marketed better are mistaken as signs that it needs to be closed. If someone is considering closing down their business, they owe it to themselves to ask if they have really tried to market it. Marketing alone could be the missing factor. Petrol station owners should ask themselves, how can I make this business more attractive?
There is no metric by which it becomes obvious that it is time to finally close or sell a business and that is no different for service stations. While there aren’t any set answers, there are some questions that every business owner can and should ask themselves to help make the decision.
By evaluating your motivations, the profitability of your business, and the marketability of your business, a clearer understanding of your business’s current standing can be gained.
If you would like to discuss the marketability of your petrol station or would like help with a valuation or advice on a possible sale, contact us.