Business development · 27 February 2018

One in four new businesses are launched solely for a future sale

Business for sale
Having an exit strategy pays off

Almost a quarter of new business owners launch their venture with a plan to sell it further down the line, research has found.

According to new survey findings, collected from 1, 000 entrepreneurs by financial planning service Jazoodle, 23 per cent started a company because they believedtheir idea would present a valuable proposition for a future sale.

Starting a business out of pure passion remained the most common factor for new founders, at 35 per cent, but was followed by a? future sale as the second.

One thing that respondents could agree on was wishing they had a way to get a realistic valuation of their business before selling. A majority admitted they had no way to gauge the value of their company.

Find out how to value your business

The study also questioned entrepreneurs on their history of starting and selling companies.?

Almost two-thirds had launched between one and three businesses, with a quarter familiar with the world of entrepreneurship behind four to six firms. An experienced 15 per cent had founded at least seven startups in their time.

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ABOUT THE EXPERT

Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.

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