But just 24 months to his e-business’ life, he cut ties, biting the industry bullet well before most around him expected. He offered his baby — which ranked among Entrepreneur magazine’s hottest start-ups for 2010 — to present card behemoth — SVM. Why did Hogg bond shortly on what appeared to be a thriving enterprise with terrific prospects before it?
It all boiled down to math, which not lots of startup types are particularly proficient at, Hogg noted in a 2011 Entrepreneur piece. In his case, he happened to be trained in finance — with the M.B.A. in finance and venture capital industry experience under his belt before entering the online world. There comes a time when many prosperous internet business owners have to face the music. The earlier they see the writing on the wall the better.
“What I knew is that basic principles of financial analysis evaporate when founders will have to decide whether to sell or compete. Maybe it’s the hype and egos connected with the acquisition environment, which is a place where dreamers chase massive amounts and winners go unnoticed. However, it’s more likely that nobody really does any math,” he wrote.
Running a growing and more corporate ecommerce business is equally as exciting as beginning a new startup. Following the adrenalin high wears off, some internet business owners only need to discover a lifetime following 3 to 5 years of constant working focused on a single aim.
So-called”human factors” factored heavily into Picnik and Phatbits founder Jonathan Sposato’s decision to sell both his companies to Google, where he’s an employee now.
In a 2011 Geekwire blog post offering unconventional motives to advertise an internet business, Sposato suggested the following.
- You want to free up money to invest elsewhere. In Sposato’s case, he wished to try his hands at the real estate and stock markets in 2010 when both were at rock bottom.
- You are bored and want new challenges. “Certainly, there are cases when you’ll have to hang in for the long haul (for the shareholders, for the group, your nearest and dearest ),” Sposato composed in Geekwire. “But, if these factors are largely absent and you’re getting an remarkable multiple in your seed money/time, then you want to follow the advice of my hero Warren Buffett who states it’s significantly better to hit a double or triple every few years than to go for the home run every 10.”
- You’re burned out. It goes without saying that when the excitement is gone, the thrill is gone.
- Your spouse wants you to advertise. A board of 1 has 2 members whose opinions must be factored into any decision.
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