While passion is still a key driver for many entrepreneurs, a new survey has found that 23% of new businesses have been set up specifically to be sold for profit.
Jazoodle polled 989 UK adults, all of whom had started at least one business. Asked why they had started up, 35% said "it was a passion of mine" and 23% said "I knew it would eventually sell well and had exit in mind".
The majority (89%) of those with exit plans said they want to make a profit; 11% said they get tired of working in the same sector for too long.
Many of those polled had launched more than one business - 62% said they had started between one and three businesses, 23% had set up between four and six firms and 15% had launched seven or more enterprises.
However, although one in five had started businesses with a view to selling, 52% said they had regretted selling a business in the past. In addition, more than half (53%) of those that had sold businesses admitted that they had not found a way to assess the value of their business before they sold up. More than half (52%) said they had sold a business "too early".
All the respondents said they wished they had a precise way of knowing how much their business was worth before they sold up.
Andrew-Paton Smith, creator of Jazoodle, said: "Launching a new business is terrifying for first-timers, but by the time you've done it more than once, it becomes easier. If you have confidence in your idea and you think it will sell for lots of money later on down the line, then there is no issue in launching something just to sell it off. It's important to ensure you are completely aware of your business' valuation though and that you aren't getting ripped off during a sale."