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Why Do Startup Entrepreneurs Selloff Their Companies

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Most startup entrepreneurs selloff their companies for reasons best known to them. Well, sometimes they reveal the reasons for their decisions, some other times they do not.

It might sound strange to non entrepreneurs when they see young entrepreneurs launching businesses and selling off after a few years and considerable growth.

One might ask, why would anyone sell his/her company?

Why not keep building and grow it into a world class company like Microsoft, Amazon, Tesla, Facebook, Alibaba and many others.

Well, it might look stupid to others but in the real sense those entrepreneurs are already fulfilled with their decision to sell off.

Therefore, let us check out some 6 solid reasons why startup entrepreneurs selloff their businesses.

6 Reasons Why Startup Entrepreneurs Selloff Their Companies.

What are the pressing reasons for major business selloff which most startup entrepreneurs experience today?

Okay, let us talk about some of them here.

Also, you can add your contributions on reasons startup entrepreneurs sell off their businesses at the comment section after this article.

1. Most Startup Entrepreneurs Face Heavy Management Requirements:

Most startup entrepreneurs do not see the management requirement ahead of them.

It might be fun at the first 2 or 3 years but as time goes on they discover the need for more business meetings, innovation strategy plans and many more.

Hence, they will require a higher staffing hierarchy and automatic business model.

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2. That Was The Initial Plan All Along:

This might sound strange but the truth is that most startup entrepreneurs who sold off their companies actually had it in mind from the very first day they started the business.

For instance, the founder of Instagram Kevin Systrom who founded Instagram because of his love for photography is no longer the owner of Instagram today.

He sold Instagram when it had only 13 employees in April 2012 for a whooping 1 Billion Dollars in cash and stocks at that time.

3. Poor Revenue And High Operational Cost Might Push Startup Entrepreneurs To Selloff:

No one will be happy to make 1 dollars after spending 2 dollars.

When a business brings in less money compared to it’s running cost, such business is already at the risk of business failures.

This will make them start loosing interest to carry on in the business.

Naturally, loses are painful and disheartening, hence it takes the mindset of a successful entrepreneur to win over.

When such cases arise, a selloff is already in view if there be any available buyer at hand.

4. Zero Future Business Vision:

It takes good business vision to build a billion dollar company and much more to dare a trillion dollar company.

Most people might be good in starting out but less efficient in growing and scaling it up.

No matter how this sounds to you, it’s the reality in the business world.

Also, some entrepreneurs only focus on starting new businesses so they can grow up it’s stock value and selloff to make huge money returns.

Which ever way it goes, they always win.

5. They Have A Greater Project And Vision To Accomplish:

In the real sense, some startup entrepreneurs don’t just sell off to take money for enjoyment and luxury purposes.

For instance, PayPal was co-founded by Elon Musk before he ventured into the world’s most valuable automaker today know as Tesla.

Oh yes, he sold his stock out from PayPal, well, that decision still contributes to helping him build Tesla.

In addition, records have it that a major part of his wealth comes from Tesla Motors, thereby making him one of the richest men in modern day records.

Therefore, some entrepreneurs sell off only to build a bigger and resourceful company.

6. Startup Entrepreneurs Also Selloff To Enjoy Their Money:

I think this is genuine enough.

Everyone has the right to enjoy the returns from their work and labour.

So if a startup entrepreneur chooses to sell off, they will do so without any one stopping them.

The truth is that over 70% of business owners who sold off their businesses have this goal in mind.

Oh yes, it sounds strange right, but that’s the deal.

They build companies from scratch and sell off when the value goes up.

The aim here is to secure heavy cash outs to afford the luxurious life they dreamt for.

This is one of the best ways smart entrepreneurs make money in this jet age.

Also Read These Articles:

6 Sincere Reason To Avoid Business Diversification.

How Will Businesses In USA Win Back Their Lost Customers In 2022.

What Is Capacity Building And How Does It Make Successful Entrepreneurs.

Social Media Marketing Master Guide For Young Entrepreneurs.


Why should anyone launch a business and sells it when the value goes up?

Do they just wish to selloff and move over to another business or they are tired of running the business?

Is it true that selling off is the only way out when startup entrepreneurs can no longer manage the day to day running operational cost of their businesses?

Also, do you think they selloff to live their dream life’s with the sold off money?

Well, they have there many reasons.

Drop your comments and contributions at the comment box below!!!

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