What is the Right time to sell startup?
Many Startup’s boom after the initial stage of funding. But later the business do has some pitfall. Many factors are associated here. It can be market trends, low funding, change in technology, or a competitor’s gain. Your Startup can be perform relatively well if the business model is strongly defined and planned for next few years. There is lots of downfall noticed in the tech section where technology randomly does drastic complications. Still there is a time when you can stay on the safer side, by pitching the startup to others who have an interested in buying. Some companies do watch startups and they are ready to invest or buy as the startup can boost its associated service or product. A few points you can refer below, to figure out what is the right time to sell the startup and work on a new idea.
Sunk Cost fallacy – Sunk Cost fallacy is a situation when you are trying to push a startup that is not ready to perform or does not has a future. It is very important to define the downfall point of a startup, rather just working on the rising points. Every new business is not completely accurate. Rather a startup is like a wireframe of the next successful business. But if you think that there is a time when you are just stretching the business that is not going to have an outcome, you have to take a decision.
The endgame – Selling a startup does not mean you are out of the business. It means working on new opportunity by keeping the existing one alive. Tie up with relative firms and business. Let them have a control on the startup if you get a good deal. Relative or parallel industries can revamped your concept and make out something extremely valuable. Ready to play the end game.
Investors – Investors are crucial point, or I say the only boat where your startup can float. So never ignore the interest of investors. Try to find out what is very important for your business; try to offer new a new pitch or model that will sustain their investment with good returns. This is the same people who can help you to fulfill your dreams.
Finding the right deal – It is always good to study, research and then act. Or take help from the experienced services around the globe. Don’t hustle fast to sell it out; rather wait for the right deal. A deal that gives you money with your involvement in the startup is always the best. Don’t bid for high deals. Instead have a close watch which deal can keep your startup working and does not create any kind of layoffs and losses.