Every business should follow a three-stage lifecycle: build, scale, then sell. Companies that stop growing lose value and margins compress. Exit while the business is still strong, not after decline sets in.
This should be every single entrepreneur's goal. You build a business, you scale that business, you sell that business, because eventually that business will die. This is why you see people in the stock market always focus on growth. And if you are not actively growing your business and it becomes stale, it's either not worth buying anymore or you will eventually have your margins compressed And your business will end up quote unquote dying. So this is why in the growth stage of your business, while you're building, you're scaling that business out, always think about in the back of your head if this is the right time to sell, because you would rather go ahead and cash in and sell that business while there's still potential than to go ahead and regret it afterwards, or your profit or your margin, where basically all these trends are in a downward spiral.
