I‘m always on the lookout for articles with the potential to positively change a business. What’s your take on the following points I came across recently?
Startup exits should be positive and planned early.
If you startup is your dream, why would you want to think about an exit? It’s going to be so successful and so much fun that you don’t need to think about what comes after. Wrong. There are two very real and practical reasons why you need to plan an exit:
- Outside investors want to collect their return. Remember that equity investments are not like loans with interest. The investor sees no return until he cashes out, or the company is sold. Even three years is a long time to wait for any pay check.
- Entrepreneurs love the art of the start. Assuming your startup takes off, you will probably find that the fun is gone by the time you reach 50 employees, or a few million in revenue. The job changes from creating a “work of art” to operating a “cookie cutter.”
I’d be really interested to know your opinion. Check out the full article here and then I’d be happy to discuss with you by phone (0407) 764-261 or email rohan@exitguy.com.au
Thanks,
Rohan
