How to Exit Your Startup When You're Not Going to Be the Next Billion-Dollar Unicorn
How to exit your startup?
When you’re not going to be the next billion dollar unicorn
Has your business startup not been doing so well? It can happen to anyone. Read more to learn how to exit your startup and move forward if this is the case.
How to exit your startup
Have you mentally checked out of your startup? Or maybe the business just isn’t working how you imagined it to be?
If you feel ready to exit your startup company, it may be time to bow out gracefully. However, there’s a right way to exit and a wrong way to do it too.
How you exit as a first-time startup business owner can define your career going forward, showing onlookers that you can deliver, or fail. If you’re not sure what the best practice is, we’re here to help. Here’s how to how to exit your startup the right way.
Keep Building Your Business
Even when you’ve decided to exit, it’s important to keep building the business. Why?
It’s a classic startup mishap. With a potential buyer looming, many startups start cutting costs to appear lean and efficient.
They allow money in the bank to dip dangerously low instead of sourcing more funding. They reduce user acquisition to save funds. They stop building the company to make ends meet, allowing revenue growth to diminish.
This doesn’t fool anyone though. While you may be making the bottom line appear well, your growth is suddenly at risk. Of course, this is bad for business and it places you in a vulnerable situation.
Investors may suggest an attractive offer, only to withdraw at the last moment once a startup has run out of money. Avoid such situations by continuing to grow your company, even when you’ve decided to sell. As a startup founder, you’ll have a better selection of offers and options if you can prove growth with plenty of money behind the business.
Seek Support
Many startup founders see themselves as lone wolves, but if you’re ready to exit your startup, the worst thing you can do is try to do it on your own.
You might want to learn more about the best exit strategies for your business.
Don’t retreat to your office and hammer out a contract alone. Seek support from people you trust, such as your angel investors who believed in you and the company from the very beginning. If you know any fellow entrepreneurs who have been through a similar situation, they’re a great option to speak to too.
These are the best people to reach out to who have you and your company’s interests at heart.
How to Exit Your Startup the Right Way
Voila, there’s how to exit your startup the right way. In the end, a successful startup exit comes down to achieving a good company as an entrepreneur. It’s all about connecting with investors that are in tune with your vision and fellow entrepreneurs that you can rely on.
Even then, exits aren’t simple, and success can never be guaranteed. If you’re still in doubt, then seeking professional help is a great way to gain perspective and to help you through the steps.
Here at BizNexus, we’re here to help. We help match business owners with the ideal business intermediaries, helping you sell your business for the best price, on optimal terms. For more information, click here.
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