Selling a startup can be the opportunity to move on to something bigger and better.
Such a sale can also bring with it a little anxiety and wonderment to what may be next in your business career.
That said by having all your focus planned on a sale, you can more times than not come out of it in good shape.
So, what might tempt you to sell your startup?
Among the reasons would be you’ve gone as far as you can with it, new venture on the horizon, or even retirement.
Make Sure You Do Your Homework
For the odds to increase on you having a sale, do what it takes in preparing your startup for acquisition.
The first business of order is to be sure you have all your affairs in order. Not doing so could close the door on any potential sales.
Of most importance would be your financial well-being.
If your startup has any notable lingering debt, do your best to cancel that out before posting for sale.
While some buyers may take on the debt as part of the deal in buying your company, many others may be scared away by it.
You also want to make sure you have your company taxes up to date. Any outstanding tax debt can also be of concern to prospective buyers.
Finally, be up to speed on any vendor agreements you have in place.
Both prospective buyers and your vendors will want to know what is in those deals before moving on.
Do You Have Something Lined up?
In deciding to sell, the hope is you have something else lined up. That is something to take up your time and keep you interested in the business world.
One option is you have decided to buy another small business.
Among the reasons for this could be excitement at the new opportunities available. It may also be a feeling like you maxed out your business and the desire for a new challenge.
While those are all fine reasons to put your startup on the market, think about those under you.
Yes, any employees you had and what their futures may be like with you looking to sell.
You could think about taking them along with you if going to a new business venture. You might also encourage the buyer of your business to include the employees in the sale.
No matter what you decide, be as transparent as possible with your staff.
Last, you may be asked to stay on with the new company. That is as a consultant or at least help during the transitional period.
Given it is never good to burn bridges, think over if you want to remain in the picture to one degree or another.
Doing this can also open some other doors for you. That is should you not have your next career move necessarily lined up.
In deciding you may well want to sell your startup, know that many people do this on a yearly basis.
The key at the end of the day is to be organized and educated on how best to go about moving on from what you started.