Question of the month: When should I sell my startup?
Thinking of cashing out? Here is what to consider when selling your company.
Reasons to sell a startup are diverse and numerous. The obvious one is a keen interest from a potential buyer and the belief that this buyer will be able to push the business further.
Another reason might be that you have lost faith in the company's purpose and/or potential. Without this belief it will be hard for you to offer the commitment required from a successful startup. Other priorities, personal or professional, as well as disagreements with your co-founders may arise and force you to consider selling your stakes.
The money stemming from your exit allows you to pursue other ventures you are interested in. External threats such as a market downturn or competitor offering with limited future improvements in sight, if foreseen, may prompt you to quickly sell your shares to mitigate a potential loss in value.
In short there is no exact nor right timeline that can be applied to all cases. The decision to sell your startup is personal and should resonate with you and bring you a sense of inner peace.