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Startup Sale Readiness Assessment

Reusability

A four-question framework to assess whether you should sell your startup by comparing your current beliefs against your founding assumptions.

How It Works

Entrepreneurs start with strong convictions that change over time. By explicitly comparing current vs. founding beliefs, you can make rational exit decisions rather than emotional ones.

Components

1

Will this work? (market/product fit assessment)

2

Will this be big if it works? (market size evaluation)

3

Can I do this? (capability and resource assessment)

4

Do I want to do this more than anything else? (motivation check)

When to Use

When considering whether to explore a sale, especially during difficult periods or when receiving acquisition interest.

When Not to Use

During temporary setbacks or when emotions are running extremely high or low.

Anti-Patterns to Avoid

Assessing during peak frustration or euphoriaNot being honest about changed beliefsMaking decisions based on sunk cost

Example

A mobile app founder realizes they still believe the product works and they can execute, but no longer believe the market will be big enough for a meaningful exit, leading them to explore acquisition rather than continue bootstrapping.