5 Things to Consider When Exiting a Startup
By Ed Johnson, CEO & Co-Founder of uRoutine
Exiting a startup is a huge step in any entrepreneur’s journey, it’s what a lot of entrepreneurs and founders dream of. And now, two weeks post-exit and reflecting on my own experience of founding, building, scaling and exiting my own tech start-up, I can confirm that a successful exit is an amazing thing!
For context and to set the scene, my co-founder and I decided to sell PushFar our profitable, fast-growing mentoring platform early in 2023. Subsequently, we stayed with the business for 19 months and now, looking back, I thought it might be helpful for other founders to hear about our experience, and a few key considerations. We decided to do this for all sorts of reasons, some of which I will outline in this article.
At the start, an exit is not something to rush into – it requires careful thought, planning, and a clear vision for what comes next. So, with that in mind, here are five considerations that I hope will help founders out there who are thinking about an exit.
1. Align with Your Passion
The word “passion” is overused, but I think it’s alright in this context. As an entrepreneur, it’s crucial to recognise when your role no longer aligns with your core passions. When I started PushFar, my excitement came from building something from the ground up, solving problems, and creating a platform that could genuinely help people.
Over time, as the company grew, my role evolved into something very different; customer support, operations, and sales became an increasing focus. While these functions are vital to any business, they didn’t spark the same enthusiasm in me. I didn’t realise this would be the case until I was in that position. This shift was a fundamental moment of realisation.
If your day-to-day work is no longer giving you energy and motivation, it may be time to consider an exit. A successful business deserves leaders who are fully invested in its future, and if that’s no longer you, selling could be the best way forward for both you and the company.
2. Mutual Enthusiasm
An exit should never be a solo decision. If you have co-founders, investors, employees, or other key stakeholders, their perspectives matter. In our case, my co-founder Gabriel, our investors, and I were all aligned. We saw the sale as the right move for both PushFar and our own personal aspirations. This collective agreement made the process far easier and removed potential roadblocks.
If you’re considering an exit, take the time to speak openly with your team and stakeholders. Are they as excited about the idea as you are? Do they share your vision for what a transition could look like? If there’s hesitation or disagreement, it’s worth exploring those concerns before making any decisions. A well-aligned team will not only help make the sale process smoother but will also ensure the company is left in the best possible hands.
3. Acknowledge the Power of Support Networks
A startup is never built in isolation, much like “no man is an island”. The success of PushFar was deeply rooted in the amazing support from our community, clients, mentors, and advisors. Throughout the journey, I had invaluable guidance from those who had been through the process before, and when it came time to exit, their insights were crucial. When preparing for an exit, lean on your support network. Of course I’d say this, given we founded a mentoring platform but it’s true!
Seek advice from those who have successfully sold businesses, consult trusted mentors, and be open to learning from others’ experiences. You’ll find that most entrepreneurs who have been through an exit are more than willing to share what they’ve learned – the good, the bad, and the unexpected. These conversations can help you anticipate challenges and navigate the emotional and logistical complexities of selling a business.
4. Prepare for the Exit and Have Things to Look Forward To
One of the most exciting aspects of selling a startup is the opportunity to explore new ventures. However, the transition from running a company to suddenly having free time can be jarring if you’re not prepared. I have read about founders who haven’t been prepared for it and have found that they are bored, quickly. For me, the prospect of building something new was incredibly motivating.
I found myself diving back into brainstorming, strategising, and even embracing the administrative tasks that come with launching a fresh idea. Two weeks post-exit, my co-founder and I are in the early stages of developing a routine and social accountability platform, uRoutine. This has immediately given me a wonderful focus and the opportunity to align with my passion again – building and creating!
If you’re planning an exit, think about what comes next. Do you want to start another business? Take a break? Work with other startups as an advisor or investor? Having a roadmap can help prevent feeling adrift after the sale. While selling a company can be a thrilling achievement, it also marks the end of a chapter. Ensuring you have something to look forward to will make the transition far smoother and more fulfilling.
Additionally, preparing for the exit itself is just as important. Make sure your financials are in order, your team is well-positioned for the transition, and your legal and operational documents are organised. The smoother your handover, the better the chances of a successful transition for both you and the acquirer.
5. Recognise That From the Moment You Sell, You Have No Control
One of the most critical aspects of exiting a startup is understanding that once the deal is done, your control over the business ends. For me, this was a relief, it was exactly what I wanted. I had poured years of energy into PushFar, and I was ready to step back. However, for some entrepreneurs, this can be one of the hardest parts of selling.
If you’ve been the driving force behind your business, letting go can be emotionally challenging. You might feel the urge to continue offering advice or checking in on how things are running. But the reality is, once you’ve sold, the new owners will take the company in their own direction. Their priorities may shift, and decisions will be made that you may not agree with – but that’s part of the process.
Remind yourself that selling means trusting the new owners to carry things forward. Take time to mentally prepare for the shift, and focus on what’s next for you, rather than dwelling on what happens after you leave. In my case, I was excited to move on, but I still found it important to consciously remind myself that the company was no longer mine to run.
So, In Conclusion
Exiting a startup is not just an end but a beginning. It’s an opportunity to realign with your passions, set yourself up for future ventures, and reflect on the incredible journey you’ve had. By ensuring your decision aligns with your passions, fostering mutual enthusiasm, leaning on your support networks, preparing for new opportunities, and accepting the reality of letting go, you can navigate this transition with positivity and confidence.
For me, selling PushFar was the right decision at the right time, and I look back on it with nothing but pride and gratitude. Here’s to my next adventure and venture, uRoutine! If you’re considering an exit, take the time to plan it properly, and most importantly – enjoy the journey.