3 Reasons Selling Your Startup Now Makes Sense

There are many keys to being a good business owner.

One of the critical ones is to know timing and how to handle it.

From when to buy a company to when to part ways with it; you want to be on the right side of such critical decisions.

With that in mind, what are some reasons selling a startup now would make a lot of sense for you?

Study the Market Trends When Considering Selling

In looking at how to prepare your startup for acquisition, where to try and sell it and what to do after, think about:


1. You want a solid return on investment – Not all owners make big money by time they part with their businesses. Everything needs to fall into place to get a good return on a startup. From a quality brand to selling at the right time and more, do your best to have things align for you. According to info from Crunchbase, more than $163.5 billion for investments in startups in 2019. Meantime, the National Venture Capital Association (NVCA) reported that U.S. venture-backed companies starting in 2019 accounted for some 2.27 million employees. As you can see, big dollars and many individuals are part of the startup scene. Your goal when looking to sell is to make sure of two things. First, there is a market for your startup. If you are in a super competitive industry, it can be hard to stand out from others. This is why the other key piece of the puzzle is having all your paperwork in place before going on the market. Not doing so can lead to potential delays in making a sale. Make sure you have all your financial numbers accounted for and that they are in fact correct. Know that there are companies out there waiting to help people like you sell their startups. Go online to research some of them to see which one is best suited to potentially land you a sale.


2. You are ready for change – You may well be at a point and time now where you want change. As such, selling your startup now makes sense. From feeling like you’ve gotten all you can out of your startup to doing something different, change is not all bad. Your goal is to make sure you have something else lined up in the pipeline. Unless a possible return to the corporate world or retirement, what will you do if the startup sells? Not having a solid plan in place could lead to some financial headaches for you. Change may also be necessary due to things outside your control. For example, you are dealing with a serious illness or injury. If so, you may be at a point where running your startup for the foreseeable future is not an option. No matter why you want to change, make sure you are as prepared as possible for it.


3. You’ve done all you can – In deciding to sell, is it because you feel you’ve gone as far with it as possible? You may be at a point where you think there is nothing left to do. You may not have the same passion for the startup you did back in its infancy. Your customer base may be stagnant or even drying up. If this is the situation you find yourself in, now may well be the time to put it up for sale. One of the big keys in being a successful business owner is being passionate about what you do. If some or much of that passion has gone out the window, why would you want to hang on to your startup? Not feeling like you can give it 100 percent each day is not doing you or the business any good.

When it is time for a change in your business world, do all you can to make the right choice.


Selling your startup comes with work and some challenges.

That said it can be one of the best decisions you end up making in your years as a business owner.

If you have sold one or more startups over time, what advice would you have for owners now considering what you did?

About the author

Dave Thomas writes for a variety of websites on topics such as human resources and running a small business.


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