Why Business Sales Are Becoming Increasingly Common in Competitive Industries

Startups can be extremely difficult to operate in competitive industries. In fact, many startups don’t even make it past the one year mark because they’re either too ambitious or simply underprepared. But why exactly are business sales becoming increasingly common, especially within competitive industries like tech and finance?

Trends shift all of the time

If your business was started due to a trend then it’s completely understandable to want to change if the trend is shifting or starting to die out.

Entrepreneurs want options

Entrepreneurs are creative people with a drive to succeed. If they feel that their current business isn’t working out or doesn’t offer them enough opportunities for success, then selling and starting over is not too outrageous.

Competition can lead to burnout

It’s surprisingly common to feel burned out when there’s too much competition. The stress of competing with larger or more cutthroat businesses can take its toll on a business owner, hence why they might decide to sell and move on to something else.

Declining revenue

It can be challenging to compete in an industry with lots of other businesses since you’re all fighting for the same customers. This can ultimately lead to declining revenue which is often a reason to pull out, especially if you’re gradually losing your market share.

Their business is worth a lot

It’s common for larger companies to buy out smaller businesses in order to take advantage of the talent, audience and products that they have produced. Below, we’ve included an infographic about valuations and the keys to a successful one. If your current valuation is surprisingly high, then there’s nothing wrong with selling your business now while it’s still worth a lot.

Infographic: Northeastern University

Isa Lillo


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