When Is The Right Time To Sell Your Startup

Thursday, 19 July 2018 / Published in Entrepreneurship & Startup, online business, Personal Growth

When Is The Right Time To Sell Your Startup

When it comes to startups, you need to recognize the moment then it’s simply time to leave. There could be a variety of reasons for you to do so, such as your business model simply not being able to withstand the pressure, or maybe a strategic plan that you’ve got in mind. When that moment comes, it is up to you to decide whether you are going to sell the startup altogether, pass the ownership to someone else, or, in the worst case scenario, discontinue your business completely.

In order to avoid the last one, it is important that you notice all the red flags on time and know when it would be the smartest idea to sell.

Your business has grown beyond the limits of your skill-set

It isn’t uncommon for an entrepreneur to happen that, once the company starts growing, they realize that they are no longer valuable to their own business. This is something that’s really tough to take in. But it is important that you take a look in the mirror and be realistic about the situation.

A moment will probably come when your business is going to start earning millions and expand into various areas that require proper leadership. If you aren’t able to grow with the company, and remain someone who was only good at boosting sales, then maybe it’s time to sell and make a change in your business lifestyle.

In the case of insolvency

If you see your business improving, but all you’ve got is just a few revenues, or you feel that you don’t have enough to go through what it takes, then it’s the best course of action to sell while there is still time. Insolvency is the last step of the ladder. It is when you can no longer fill out your financial obligations. In this case, DW Advisory suggests getting the help of an expert.

So, make sure that you track your expenses and how much cash you’ve got so that you don’t find yourself in the situation that you’ve got less than a month worth of money. Seize the opportunity to sell on time, before you are already far too gone into debts and last resorts.

The market isn’t working in your favor

There is also the situation when you come to realize that there is a big trend in the market that you cannot meet, and you become aware that it will leave your business on the margins. That is one of the crucial moments to start thinking about a way out. The truth is that technology is advancing on a daily basis, and there isn’t a single business that is truly bulletproof against changes that might push it out of its tracks.

So, make sure that you keep track of all the evolving trends. It might even happen that you become aware of one, but it’s booming so fast that you’ve got very little time to act. This is when you need to be quick and sell as fast as possible.

Your team isn’t working out Your business might even be growing quite well, and your cash-flow may seem satisfactory, but you are in big trouble if your team isn’t as good as it should be, and there is no way of fixing it. The simple fact in this case is that, no matter how good things may seem at the moment, a team that isn’t working out is going to bury your startup.

Sadly, sometimes the combination of the best individuals for the job simply isn’t good enough to make up a functional team. This is one of the signs that you should better sell than keep going.

Your team isn’t working out

Your business might even be growing quite well, and your cash-flow may seem satisfactory, but you are in big trouble if your team isn’t as good as it should be, and there is no way of fixing it. The simple fact in this case is that, no matter how good things may seem at the moment, a team that isn’t working out is going to bury your startup. Sadly, sometimes the combination of the best individuals for the job simply isn’t good enough to make up a functional team. This is one of the signs that you should better sell than keep going.

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In summation

No matter how great your intentions were at the beginning, there comes a time when your startup is better off being sold than kept running. The market tends to crush startups often with all the technological advances happening on a daily basis. You might also find yourself in the situation where you simply don’t have enough money to keep your business going, or it could be that your team simply cannot work together.

On the other hand, it is also possible that your own skill-set is no longer valuable to the startup that has begun to grow, and it is time for you to look for other ventures.