Do All Entrepreneurs Need an Exit Plan?
Most entrepreneurs don’t have an exit plan. Most advisors and academics says they need one.
A growing chorus is singing the song of the entrepreneurs. We think they’re out of tune.
Bankers have at least two ways to get their money back or they won’t loan you money. Venture capitalists have an expectation of how they will get out before they get in.
As an entrepreneur, you have a greater stake than anybody else in your business, no matter how much money they tie up in it. You need to know how you might exit even if you don’t plan to exit.
It’s about liquidity.
At some point in your life, cash may be a more valuable Asset than a business. With every other Asset, we invest cash thinking it will turn back into cash someday. Why should our businesses be any different?
It’s about legacy.
Exit planning is continuity insurance. You’ve put your heart and soul into your business. Do you want to risk that it falls apart if you’re not able to be there for one reason or another? Of course not.
Most importantly, it’s about options.
If you plan on an exit and run your business accordingly, you’ll have the ability to walk out completely or at least step away and create some distance. At some point in your life, you may find more enjoyment from activities that don’t involve building a business.
It doesn’t mean you ever have to retire. It doesn’t mean you ever have to sell out. It does mean you’ll be able to live your whole life on your own terms.
Do you need help planning your exit? Maybe we can help. E-mail us at firstname.lastname@example.org or leave a voice mail at 877.988.2444.
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