>Would you sell it for $20 million? If you answered yes, at this stage, find a new idea.
Selling a business for $20M would make it a lot easier to get traction for your next idea.
Selling a business for $20M would make it a lot easier to get traction for your next idea.
I sold my company for less than 20 million because I came from a middle class family, I had never had money, my parents were the epitome of middle class and I lived a modest life. The amount of money we settled on was enough for me to life for a very long time without significantly changing my lifestyle. It gave me a sense of security and a parachute in case I was to fall on hard times later.
Even at a young age I knew i was giving up alot of possible future profit for a short term payday, but that said i have never really regretted selling because it gave me the freedom to do anything I desired, as it turns out what i want to do and what I was already doing arent terribly far apart, but the projects I am working on now are EXACTLY what I want to do and will make money as time goes on but do not have to be rushed or turned into something they are not.
My current project I would not sell unless my percentage of the exit netted me over 250 million probably however I am a long way from that and just having fun right now.
Though for the most part I agree with the author of the original posts I just think people should consider that there are reasons why some people choose to exit for smaller amounts, some make perfect sense and others make very little however as long as the person selling is happy with the outcome who is to judge?
I'm not at all against starting lifestyle businesses; those also do not have exits.
Also, with that kind of money, you can actually socialize with VCs as equals and, if none of them want to fund you after a few years, it's probably because your idea sucks (as a business). Then you do not hire other people and you do not lose your $20 million.
That's what I would do. I wouldn't hire a single person (for cash, not equity) until I had the validation of knowing other people were willing to invest. This is because I know I'm smart, but I've done creative work (game design, writing) and know that half of even my ideas are bad. Creativity is just about having the persistence and judgement to develop the good ones.
my Linode hosting bill and Ramen receipts would beg to differ with you on that point. ;)