5 Signs It’s Time to Sell Your Startup, According to Corey Shader

There may come a time when it’s best to sell your company and move on to something else. As Corey Shader explains, though, it can be very difficult for entrepreneurs to sell their company.

One of the biggest challenges that entrepreneurs face in this regard is knowing exactly when to sell. Timing is essential if you want to maximize the return on your investment and/or minimize your long-term risk.

Luckily, there are many signs that can help you make the right decision. Here are five signs that it might be time to consider selling your business.

1. It’s No Longer Fun

Startup companies are so much work. They take up so much of your day, whether you’re actively working or thinking about it when you’re not.

Running a startup should be fun. Not every part of the day should feel like a vacation, of course, but it should bring you consistent enjoyment.

If it doesn’t anymore, then it’s time to make a change. That change could be hiring more help to take annoying administrative tasks off your plate. Or, if you’ve just grown tired of running the startup, it could be time to sell.

2. You’ve Grown Too Much

Business growth is a good thing; it’s something that every entrepreneur aspires to achieve. At the same time, it’s possible that your startup could eventually outgrow your own skillset.

Maybe you’re really great at taking a business from the idea stage to launch, but you’re not great at significant expansion. Or, maybe you’ve already experienced massive growth and you’re not suited to handle what needs to be done.

This stage could be an opportune time to sell to someone else who is more capable of building a sustainable business.

3. There’s Another Opportunity

Many entrepreneurs keep their eyes peeled for new opportunities at all times. Sometimes, opportunities arise seemingly out of nowhere. In many cases, these outside opportunities could take capital that you don’t have on hand or that’s tied up in other assets.

If that’s the case, then it might be a good time for you to sell your current company so you can capitalize on that opportunity. In this way, you’ll be potentially benefitting from profits from the sale of one company and then re-investing a part of that in another endeavor.

4. You’re Ready for a New Challenge

Entrepreneurs love a challenge. They love to start businesses from the ground up and accomplish things that most people would consider impossible.

After your startup is fully established, you may lose some passion for it — only because it’s not as challenging as it once was. This isn’t a bad thing. It just means you’ve created a stable business.

But, if you thrive off new challenges and feel you’re ready for that next one, it could be time to sell your startup.

5. Threats Have Emerged

Not all industries last forever, and not all businesses last forever within all industries. New threats emerge all the time, as Corey Shader explains, and some of these threats can spell doom for startups — or at least foreshadow difficult times ahead.

If you’ve identified a looming threat on the horizon, it’s prudent to decide whether you’re prepared to take the challenge head-on, or whether you’d rather step aside while you still can. Know that deciding not to take on a threat doesn’t mean you failed. In fact, getting out while the “getting is still good” is a savvy business decision to make. Also short selling is an option.

About Corey Shader

Corey Shader is a self-made entrepreneur, consultant, investor, real estate developer, and founder of several companies, notably Insurance Pipeline. Operating primarily out of Ft. Lauderdale, Corey’s endeavors span across the nation, consulting for start-ups, and sitting on the board of digital media and senior healthcare agencies. As a consultant, Corey helps young businesses develop sales funnels and maximize profitability. Shader takes pride in challenging others to push themselves to be their very best — he believes in constant self-improvement, inspiring others through sharing his own life experiences.