Sell Your Business Instead of Shutting It Down

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Many startups fail to achieve product-market fit or breakout growth.

Founders who decide to move on most often shut down the business.

Instead of shutting it down, consider selling your startup.

If you have a functioning team, then look to competitors who may want an acquihire.

The team itself can be sold to another company as a working business unit with its own technology base already in place.

This provides ongoing employment for the team members.

Review the customer list to see which other businesses may be interested in taking over the customer base.

Look at other data elements to determine potential value.

It’s possible another company will buy out the startup for its data generation value.

Consider the industry the startup is in.

There may be companies that want to enter that industry and are looking for a way in.

Most of these options will not bring an outsized return to the founders and their investors.

However, it does give the founders a win.

In their next startup, they can say they launched a business and sold it for a gain.

This puts the startup into the win column.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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