Does your business plan include an exit strategy?
I was reading an article on WashingtonPost.com about how social search startups have sprung up to fill in the gaps that the larger search engines like Google and Yahoo! have left open. It’s an interesting read and made me think of how important it is for any business, whether you’re internet based or home based or even traditional brick and mortar, to have a plan for an exit strategy.
For some startups, their entire business plan is to create a viable business that will end up being purchased by a larger company. It takes a different mind set to start out with this particular end game in mind. Many entrepreneurs treat their business much like an additional family member and have a difficult time conceiving ever giving it up.
That’s cool. But so is starting a business so that you can profit from its ultimate sale. Remember Step 1 of StartupNation’s 10 Steps to Open For Business – create a life plan. If selling your business supports your life plan, then go for it. If maintaining your business for the rest of your life is what supports your life plan, you’ll act a whole lot differently. Every day decisions will be made with a whole separate set of criteria.
Have you asked yourself the key question? Do you plan to exit? Ever?