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Welcome to David Beats Goliath, where we aim for higher ground with weekly insights and ideas for conquering the Goliaths of conventional thinking.

Dear Founders,

When you have too much on your plate, sometimes it just makes sense to call it quits.

Last night, one of the founders of my portfolio company shared how they decided to sell one of their products in its entirety to the highest bidder.

I was pleasantly surprised.

Most founders (including me in the heydays) get obsessed and tunnel-visioned about their baby (= product).

Yet these guys were talking about selling off assets to increase their efficiency.

Kudos!

Closing Doors

Many entrepreneurs are optimists. We see the good amidst the bad. We see opportunity, where others see nothingness.

Naturally, it’s really difficult to close doors on projects that we launched.

It can feel like admitting defeat: “I was wrong” 😑😔

But if you think carefully about it, your goal is never to be “right” or “correct.”

Do you know who is obsessed with being “right” all the time?

• Perfectionists who can't stand making mistakes.
• Folks who are more interested in winning arguments than finding the truth.
• Those who fear being seen as weak or incompetent.
• Insecure individuals who equate being right with their self-worth.
• People who haven't yet learned the value of growth and learning from mistakes.

Knowing HOW to close doors is a reflection of maturity and awareness.

And knowing WHEN to close ‘em is a reflection of good judgment.

But what will my investors think?

Who cares?

Investors love founders who have a backbone.

Good investors would rather be wrong, if it means that the founder is right (not vice versa)!

If there’s a product in your arsenal that you can:

1. Sell
2. Free up more time
3. Focus on core products/services

Then, BRO, your investor should, could, would want you to go sell faster!

Alternatives to Selling

But selling isn’t always ideal.

There may be no suitable buyer. Or perhaps you see the product doing better sometime in the future.

There are other options besides selling.

You can put it on:

1. Autopilot — have it hum in the background with minimal input and spend
2. Hiatus — pause and put it on “vacation” until you need it back
3. Lease — partner up with or license it to someone who can utilize it better

What’s important, however, is to CLOSE the door (even if temporarily).

Happy building, selling, and scaling!

And always aim for higher ground!