Opinions expressed by Entrepreneur
contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
It is fascinating to be an entrepreneur. It is usually reckoned that entrepreneurship gives a sense of freedom and dominance, especially over the employees. However, reality is absolutely different. Oodles of hard work and knowledge need to be imbibed to become a good businessman. Heading an enterprise gives freedom and on the flip side, responsibility to lead the company. Underpinnings of the company are laid down by the business owner and thus, the owner should be thorough as to what he is doing.
Take failures as mistakes rather than bloats on the professional career. Failures are life lessons that educate and direct the people, things that they should not repeat again. There are various abstract reasons for business failures. In the growing competence to serve better and faster, new companies are emerging and presiding over the economy for a longer or shorter period.
Some companies create their mark whilst others fail to achieve aimed targets and eventually meet their doom. This situation is prevailing globally. At present, there are enormous companies which are proven examples of business failures. When reflecting on the Indian business ecosystem, then there are multiple big, as well as small companies, which fall into the category. Foodpanda, a food delivery platform, could not adapt to the Indian economy and further, faced challenges to float the business. Lack of tools and innovation, trickery and poor management etc. are contingent for the poor performance of the food delivery company.
Apart from the company’s foundation, all other strands had burnt down in the company. Later, Ola, an Indian ride-hailing service, acquired the company in 2017. Selling off the company was considered a well-thought decision and in turn, facilitated the business entity to float in the market now. The new acquirer worked on the business model, configured issues and transformed it into one of the competitors in the online food ordering industry.
Can’t Make It, Then Sell It
Why Yielding small bags of revenue from the business? When handling the business becomes difficult and you are devoid of know-how, then it is time to take a final decision. Sometimes, selling the business is advisable rather than dooming along with the endeavour.
If the company is not performing well and anticipates toppling in the toughening market conditions, then halt working or investing in it. Investing scores of money into the business for a long time without endowing back the money is imprudent. Entrepreneurs should not carry on such businesses; instead, they should look for investors or buyers.
To increment the possibility of higher valuation, invest time on configuring small issues on the business model. Consider expert tips as to how to sell the business effectively.
1. Financial Report
Financial performance of the company is the first determining factor in business valuation. Prospective buyers view financial health throughout the trajectory. Therefore, projecting a positive image is imperative for the entrepreneur.
2. Management Team
Besides financial performance, management is the second strand for determining valuation. While procuring the company, buyers often seek the former management team in order to understand and head the company better. The team should be complaint and exhibit knowledge of crucial matters relatable to the company. In this way, buyers will intrigue to acquire the business.
3. Strong Ties With The Customers
A huge customer-base is an enticing feature to woo buyers. A fortified bond with the customers is what buyers seek in the selling ventures. By receiving a ready-made network of customers, the company does not have to put a lot of efforts and yield good results. Therefore, the company should exhibit a broad network of customers to increment possibilities of sale.
Follow the aforementioned suggestion to receive the actual worth of business.