I think it is hard to definitively say whether I would sell my business in 5 years or keep it more long-term. I would say it would all depend on the status of the business -- should it turn enough profit and be hitting a stride in 5 years time then no, it would probably not be the best financial decision to sell the business. However, I think there are other factors to consider as well such as longevity, mental state in terms of your relationship with the business, etc. I am not personally super attached to the business idea so keeping it for a family business sake is not really something I would consider. I think the most realistic exit strategy is to plan on selling at a certain point that it makes the most financial sense, whether that be 5, 7 or even 10 years -- as long as the deal is right.
I have selected this strategy because as a child of an entrepreneur who has owned and sold several businesses, I see the tole it takes on an owner -- mentally, family wise, etc. The sacrifices are vast and it comes to a point where it is hard to find joy in the same thing you once did, but the profit and financials have to be in order to step away confidently, which I have learned from my business-owner father.
My exit strategy has influenced certain aspects of my decision-making during the development of my idea through these prompts. For example, I think my natural venture progression would be to start selling products made and housed specific to my facial bar, but this would only be a good move should I see some sort of longevity within the business instead of viewing it as a short-term startup that I would sell off quickly after starting.
HI, Rachel! I honestly appreciate your honesty and open-mindedness about your business. Often times, we get so caught up in our aspirations and how we see our business doing that we sometimes cannot see what's right in front of us. Divesting in a business can be a hard thing to do, but it makes sense if you're not completely passionate about it. Only time can tell whether it'll be successful in the future anyway.
ReplyDeleteHey Rachel! I think it is very smart to actually see where the business is before you decide to sell or keep it. Businesses are hard to make and a large chunk fail and a large chunk succeed. It doesn’t make sense to keep at it if the business isn’t working after a while. I also chose to sell although I just chose 5 years. I think I should be as honest as you and think more of how I would sell instead of just saying I would sell in x amount of years.
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