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The End Starts at the Beginning

Written by: Vicki Donlan

Article Overview: Every entrepreneur must begin planning their exit strategy at the beginning. The months spent on writing a business plan must include a plan for the end of the business as well as the start.

The End Starts at the Beginning

So you want to start a business. You have always dreamt of being an entrepreneur. You have an idea of a niche business and have begun writing the business plan that will raise the money you need to get you started. You are excited to get started and have planned every step from startup to profitability. But have you considered an exit strategy? Have you spent one moment thinnking about how you will exit your company whether or not it becomes profitable or if and when you want to get out due to health, boredom, exhaustion or any other of life's unexpected circumstances? If you are like most entrepreneurs your answer to this question is No.

Well, listen well. It is estimated that only six out of ten successful businesses every sell. That means four successful businesses out of ten just close down due to lack of planning. Of course, these numbers, don't even begin to tell the story of those companies that never reach profitablity and can call themselves successful. Once you have spent your blood, sweat and tear building your dream company shouldn't yoiu take time to plan for the exit?

There are a variety of exit strategies that one can plan for. Sell to employees, have a succession plan for family members in the business, sell to an outside interested entrepreneur like yourself who like you wants the lifestyle, take the company to an IPO, or sell it to another company whose operations allign with your companies and the margins make semse. These are just a few of the variety of scenarios for exiting a company and they haven't even touched on what your role or position will be in the new entity.

Never assume that if you build it well buyers will be at your doorstep when it's time for you to exit. It's your company, it's your passion and you'll will hear over and over again that you are the company. This is exactly why your exit strategy is so important from the beginning. Separating the company from yourself must be something you think about early on. Planning now will ensure that you will be one of the six out of ten that sells rather than one of the four who close the door and just go home.

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Article Tags: blood sweat, boredom, business plan, doorstep, dream company, entrepreneur, exhaustion, exit strategies, exit strategy, family members, ipo, lifestyle, margins, niche business, numbers don, passion, profitability, scenarios, succession plan, unexpected circumstances



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