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Why do entrepreneurs sell their business?

There are times when entrepreneurs sell their businesses. There is a lot of speculation as to why someone would do such a thing. These are some of the reasons entrepreneurs sell their businesses:

Stagnant Growth-

Businesses constantly need to grow to remain successful. There comes a time when the business growth has hit a wall with no scope of revival. At this point, it is wise for most owners to calculate the profit and sell out the business.

A real entrepreneur never stops-

Timing is important in business. Some entrepreneurs always come up as winners are because of their sense of timing of their ventures. Also funding and capital play a big role for a venture to be successful. And by selling off their old business they gather funding to open up a new business.


In life, all of us face emergencies at some point in time. Legal troubles, medical emergencies, divorces, foreclosure troubles, etc. can hamper our finances and certain owners in order to raise money selling off their businesses.

Some entrepreneurs are flippers:

There are a certain group of entrepreneurs who are more into starting a venture. They start with a mindset that after their target is achieved, they would sell it off and would go to look for new ventures.

Lack of interest

After pouring in 80 hours of work and building a brand some entrepreneurs lose interest and devotes their resources elsewhere. Thus, not giving 100% to their businesses can result in decreased sales, and thus selling off a business while still, it generates more revenue is more appealing to the entrepreneurs.

Always remember “Create something, sell it, make it better, sell it some more and then create something that obsoletes what you used to make.” – Guy Kawasaki

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