Deciding to move on from your startup is without a doubt a big decision to make.
That said it can be one to open the doors to other business opportunities now and down the road.
With that thought in mind, how best to go about putting your startup on the market?
Getting the Right Price
When looking to sell a startup, ownership wants to get as much money as possible for what they put together.
That said do you have a good sense of what your startup is worth at the end of the day?
The last thing you want to have happen is you get low-balled with one offer after another. Remember, you put a lot of time and effort into your company. As a result, get what it is worth.
In looking at what you may expect for your startup, have a realistic view of what the company is worth.
From any initial offers you may get to the earnout structure in an acquisition and more, cover your bases.
Know what you can likely expect to get for your company when selling it. That is any upfront money and money to close the deal.
In the event you have any large debt with a startup, you might look to see if a potential buyer would be willing to take it on. If they would do so, you are going to have to ask for less money when looking to sell. You might be at a point where you want to finish a sale and will take less for the business to part company.
At the end of the day, do the math and figure out what is in your best financial interests when you look to sell.
Are Any Workers in Play?
If your startup has any employees, what may their immediate future hold if you sell?
Given these folks played a key role in your ability to run a company in the first place; think of the impact of a sale on them.
That said be as transparent as possible when talking of selling your startup.
Think about if the shoe were on the other foot. You’d want your employer to be upfront with you when thinking of selling.
By letting your employees in on your plans, they have time to find other work. That is if they are not part of any transaction deal.
Do You Have Other Work Lined up?
As you contemplate moving on, what might the near future hold for you when it comes to employment?
From finding another business to buy and run to working for others, what choices do you have in front of you?
If you have one or more businesses, you may well move along to running them full-time.
In the event you do not want such responsibility, one option is going to work for someone else. This can be enticing knowing you do not have to make the big decisions.
In selling your startup, the door is open to new beginnings and possibilities in your career.