Reasons Why You Should Sell Your Startup
So you’ve ditched your day job and are ready to take on the world from your home office as an entrepreneur. But then reality sets in. Money may be tight, and the stress of financial insecurity gets to you.
Your passion for entrepreneurship begins to wane. So what do you do? Sell your startup!
If you’re finding it tough to keep going with your startup or thinking of giving up, here are some reasons why selling your startup might be the right option for you:
You want to get rich quick
If your startup doesn’t have the potential to make you filthy rich (or at least very comfortably off), then you may be better off selling it. You may not even need to sell your entire startup to make a quick buck.
You could sell a chunk of your company to get the cash and then keep running things. This way, you get some cash for your efforts so far and still have an opportunity to make a lot more if the business takes off.
Keep in mind, though, that selling a portion of your company means you’ll have less equity in the business and thus will stand to make less money if the business is wildly successful.
You’re in over your head and can’t see a way out
You put everything you have into your startup, but it just isn’t paying off. You don’t want to give up, but you can’t see a way out. Maybe you tried to raise a bunch of money and it didn’t work out.
Maybe you tried to bootstrap your product and got swamped with customers. Or, maybe you got a little too ambitious with your idea and saw it take longer than expected to bring to fruition.
Whatever the case, if you’re in over your head, selling your company might be an excellent way out. If you have a client or investor who is interested in buying your company, you might be able to negotiate a deal that allows you to walk away with a healthy chunk of cash and a clean break from the business.
You’ll have the money you need to move on to something else and your buyer will have the opportunity to move your idea forward.
Your idea isn’t working out the way you thought it would
Maybe your idea was great, but the market wasn’t ready for it yet. Or maybe the market is ready for your idea but you just can’t get the product to work right. Or maybe you’re just not seeing the traction you need to get your idea off the ground.
Whatever the case, if your idea isn’t working out, you might be better off selling your company and moving on to something else. If you have an interested buyer, you may be able to negotiate a deal that allows you to walk away with a good chunk of cash.
If you don’t have a buyer, you can try your hand at convincing investors to give you money to move your idea forward. Or, you could go the bootstrapping route and finance your business with your own money. This last option can be risky and will take a long time, though.
People don’t take you seriously because you’re young
You’re young and have been at the entrepreneurial game for a while now. You’ve got a good product, but people think you don’t have what it takes to run a serious business. Investors are hesitant to fund your idea.
Customers want to work with an established company. You can’t get the investment or customers you need to keep the business going. If people won’t take you seriously because you’re young, selling your company might be the best option.
If you have an interested buyer, you can negotiate a deal that allows you to walk away with a lot of cash. You can also try to convince investors to fund your idea. However, you might have more success if you had more experience under your belt.
If you’re struggling with your startup and aren’t sure what to do, selling your company might be the perfect way to end your suffering. You can score a nice chunk of cash that will let you walk away from entrepreneurship with your head held high.
At the same time, you can let someone else carry the torch and move your idea forward. If you’re struggling to keep the entrepreneurial fire burning, you might be better off selling your company and moving on to something else.
Make sure you are fully committed to this decision before taking any steps towards selling your company.