Management Tip of the Day: Should you sell your business?
BOSTON (Reuters Life!) - When facing the so-called founder's dilemma, separate your financial reasons from your non-financial motivations when thinking about whether to sell, says Harvard Business Review.
The Management Tip of the Day offers quick, practical management tips and ideas from Harvard Business Review and HBR.org (www.hbr.org). Any opinions expressed are not endorsed by Reuters.
"Most successful entrepreneurs will eventually need to decide whether to sell their businesses. If you are lucky enough to be in this position, ask yourself these questions:
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."
-Today's management tip was adapted from "The Founder's Dilemma: To Sell or Not to Sell?" by Anthony Tjan.
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