Why Exit Becomes a Disaster for Founders
Posted: Mon Jan 06, 2025 4:36 am
Most founders are unhappy with how their fate turned out after their exit, says the author of the book Finish Big. He interviewed 150 business owners 20 years after their exits and found that only 7% were happy that they left their companies. In his book, Bo Burlingame explains what the other 93% were unhappy with, and I will try to explain how not to be among them.
The company's value turned out to be disproportionate to the amount of effort invested
When planning a sale, you need to compare the startup's valuation with expectations. You can ask questions: will this money be enough to launch a new project? Will I sell the company for less than I expected? The answer to the last question can be considered an additional marker of the decision "to leave or not to leave." If the answer is "yes," it means there is little energy left, and the founder is definitely not ready to invest in the project and will not be able to lead it for much longer.
However, this does not oblige you to agree to the first offer belgium whatsapp phone number you receive: even if now it seems that it is better to hand over all the work as quickly as possible at any cost, then later, looking back at this moment, you will be dissatisfied with your haste. You need to decide what can be adjusted in the price and conditions for buyers in accordance with your own plans for life.
The business has not brought any obvious benefit to society.
The "happy" founders in Burlingham's book noted that they are proud of what their project has given to users. Even if impact business is not the founder's main mission, it is better to analyze how else you can improve the startup right now, while leaving is only on the horizon. What innovation to implement? What partners to attract? Or maybe you have already thought of creating a new project with intangible values? My project, for example, had its own mission: to make the withdrawal of funds for drivers instantaneous. After all, before, they waited for payments from taxi companies at the end of the month, and had to pay for car rental and gasoline constantly.
The company's value turned out to be disproportionate to the amount of effort invested
When planning a sale, you need to compare the startup's valuation with expectations. You can ask questions: will this money be enough to launch a new project? Will I sell the company for less than I expected? The answer to the last question can be considered an additional marker of the decision "to leave or not to leave." If the answer is "yes," it means there is little energy left, and the founder is definitely not ready to invest in the project and will not be able to lead it for much longer.
However, this does not oblige you to agree to the first offer belgium whatsapp phone number you receive: even if now it seems that it is better to hand over all the work as quickly as possible at any cost, then later, looking back at this moment, you will be dissatisfied with your haste. You need to decide what can be adjusted in the price and conditions for buyers in accordance with your own plans for life.
The business has not brought any obvious benefit to society.
The "happy" founders in Burlingham's book noted that they are proud of what their project has given to users. Even if impact business is not the founder's main mission, it is better to analyze how else you can improve the startup right now, while leaving is only on the horizon. What innovation to implement? What partners to attract? Or maybe you have already thought of creating a new project with intangible values? My project, for example, had its own mission: to make the withdrawal of funds for drivers instantaneous. After all, before, they waited for payments from taxi companies at the end of the month, and had to pay for car rental and gasoline constantly.