Situation 3 An entrepreneur addresses the difficult question of when to sell his
ID: 345992 • Letter: S
Question
Situation 3 An entrepreneur addresses the difficult question of when to sell his business: I started my telecommunications business when Iwas 18, and I'm going to be 47 this summer. It's a successful business and provides me with a good living.... Yet each day I feel more and more unfulfilled in what I'm doing....I have a lot of busi- ness knowledge that I feel is being wasted here, just doing the same thing year after year. I've tried some side ventures.... I've also considered selling the business, but it's too large to be bought by a local competitor...and too small to attract the attention of large companies. Besides, I don't know what l'd do if I did sell it. And will whatever I do next allow me to earn as much money as I'm earning now? More important, willI like it, or will I regret letting go of the one thingI've had all my adult life? Source: Quoted in Norm Brodsky, "Street Smarts: Ask Norm." Inc., July 2008, pp. 69-70. Question 1 Do you agree that the entrepreneur's company is not sellable? Question 2 Are there any other options for the entrepreneur besides selling his business? Question 3 What would you recommend the entrepreneur do? Why?Explanation / Answer
1. No, I disagree that the company is not sellable. The entrepreneur is disturbed both mentally and emotionally that he is going to sell his business which he started when he was just 18. I would say that the entrepreneur is not prepared for the change. The entrepreneur needs to develop strategic plans in harvesting (exiting) his business. The harvest needs to be planned well. Harvesting needs to be anticipated; the conflict arising out of this decision needs to be managed well both emotionally and culturally. Once the decision of harvesting has been made, the next step is to choose from the different harvesting strategies to sell the business.
2. The entrepreneur is a purpose driven person who is very optimistic in nature. Thus he definitely has other options besides selling his business. They would pursue of what is important to him/her. They would have invested time and efforts in developing the business. In the process, they would not have spent time to pursue their dreams or passion. After harvesting, they would pursue things they are passionate about.
3. Personally speaking, I would suggest the entrepreneur to hold on to his business instead of exiting. The time and effort spent for so many years to develop the business should not be just given away to another person due to financial or other reasons. The entrepreneur should empower his son/daughter to take over the business. Otherwise, he should hand over the business to a group of directors and oversee the business operations of being the CEO of the company. This would help him to retain his dream business and pursue things that he is passionate about. He/She would never regret of letting it go forever in his lifetime.