Wednesday, April 27, 2011

Selling your new Business

MANAGEMENT TIP OF THE DAY
Entrepreneurs, usually build up on an idea, which is so unique and consumable, that when it reaches the best point, it comes in the radar of VCs and yet, is well invested or bought by them. But as you grow or invest in your new idea, think before you sell it.

It might look funny but think on the idea THE SOCIAL NETWORK, gave to the world. When Zukerberg was ready with the idea, he didn't sell the idea to the VCs, he was advised by Shaun arker, to make himself the CEO and let it remain public, making sure it is developed and framed to what Mark wanted it to be.

So, its the best thing i can also come up with, while thinking on the same lines, like, you should think before you want to sell your new business. An example of Victoria Secrets is in front of everyone. So before thinking to sell, think:

  1. Do I need to sell? Explore whether there are other options such as investing in assets with long-term value that push this question off until you are ready.
  2. Can I take some chips off the table? Look at other options such as a recap, a dividend, or a partial sale of your stock.
  3. Do I want to sell? What you want personally is as important as the dollar amount you might get. Ask yourself whether you will be happy or feel as if you sold out too soon.
Curtosy: HBR Management tip of the Day
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