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Tech entrepreneurs who sell their businesses can find new energy for whatever is next.
August 14, 2023
“The cowards never start and the weak die along the way.”
– Oregon Trail Frontiersman
Western explorers remind us of the challenges pioneers faced as they pushed west toward California and the Oregon Trail. It’s a testament to the strength and determination of those who overcame major challenges to reach their destination.
While we could never directly compare frontier legends to tech founders, there are similar personality traits of courage and DNA built into these people that helps overcome adversity.
One of the biggest challenges tech businesses face is competition. There are several million IT services businesses across planet Earth – with Microsoft and Salesforce partners alone making up at least 600,000. Needless to say, it’s difficult to stand out from the crowd.
IT businesses also need to be constantly innovating because the IT landscape is ever-changing. Today’s opportunities lie in leveraging AI, automation, next-gen cloud computing and hybrid workplace settings.
Much like pioneers, tech entrepreneurs need to be strong-willed, gutsy and determined if they want to succeed. While generating that first million of revenue is often the hardest, growing beyond $5 million, $20 million or even $100 million is something less than 1% of U.S. businesses ever achieve.
More than 50% fail within the first five years.
The willingness to take risks requires a whole different set of skill sets. Pioneers and entrepreneurs have a high degree of self-confidence, optimism, resilience and resolve. They see potential for success in even the most difficult situations and are not afraid to act. These same traits are needed when contemplating the sale of your IT business.
There are many reasons why founders sell their business:
Pursuing other interests (business or personal)
Raising capital for a new venture
Getting out of a bad situation (distress, divorce, disability, other)
Selling an IT business is a complex and stressful process, but it can also be rewarding and life changing. The right buyer can provide the resources and expertise that an IT business needs to reach its full potential, or it can provide an exit door to the second half of your life.
The sale of an IT business is very much like the end of the Oregon Trail. Pioneers who made it to Oregon achieved their goal and could now start a new life. Similarly, tech entrepreneurs who sell their businesses can find new energy for whatever is next.
In recent years, there is a growing trend of tech founders nearing retirement age selling their businesses. This is due to a number of factors including:
Increasing complexity of running a tech business
Desire to spend more time with family
The need to secure financial stability for the future
For example, in 2022, the founders of Zoom sold their business for $19.1 billion. The founders were in their early 50s and decided to sell the company so that they could retire and spend more time with their families.
The sale of a tech business can be a great way for founders to achieve their financial goals and to secure retirement. It can also be a way for them to pass on their legacy and to ensure their company continues to thrive.
If you are ready or just want to talk about selling your IT services business, let’s talk about the Channel Futures M&A Marketplace. The process is powered by our firm, which has been closing IT services deals for 26 years. We have a global database of more than 70,000 buyers, which has helped us close more than 250 transactions in more than 25 countries.
This guest blog is part of a Channel Futures sponsorship.
Read more about:VARs/SIs
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