How to bow out with grace

Aug 3

by Marvin Cheung, Head of Research and Strategy

Pursuing anything new is challenging. Starting a new venture is particularly challenging. If you feel you have given it your best, give yourself a pat on the back. Well done for making it this far!

Before you make the decision to shut down your venture, take a few days off: grab a beer with your friends, walk your dog, go on a hike.

If you really believe that is the right decision, we support you. Remember how we mentioned that this Course Book is as much about preparing for success as preparing for failure? We actually recommend creating a personal contingency plan whenever you do your venture’s quarterly planning. Keep some distance between you and your venture. You can always start a new venture, but if you cling on to a venture and run it into the ground, it will be much harder for people to support you the next time.

Details of the dissolution process will be formulated by your lawyers, though we can still paint a picture of how a smooth transition looks like:

Talk to outside advisors and get a second opinion privately.
Communicate your concerns with your executive team, investors, and advisors early. They might be able to get the venture back on track. Do not be afraid to ask for help.
Review all of your contractual obligations and confirm the dissolution process with your lawyers. You may also need the assistance of an accountant.
If the decision to close moves forward, your legal team will file the official dissolution documents. Inform your employees as well as customers of your plans tactfully. Let your customers know how they might migrate their services to another company and provide a date for the end of life of the service. Treat your employees with care. Offer career support and severance packages whenever possible.
Finally, the company will move into shutdown mode: collecting money from outstanding accounts, liquidating assets, closing financial accounts etc. During the liquidation process, you may be able to sell the company’s intellectual property or arrange a talent acquisition for your staff and repay your investors. Do as much as you can to support the people around you. Leave on good terms.

What’s next? Know that you will be okay. Spend some time to regroup and reflect on the experience. Some people return to their corporate jobs, others go pursue an advanced degree or become a consultant. If you want to start another venture, you can always give it another go when you are ready!

How to bow out with grace

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