The Exit Strategy

For most young entrepreneurs, the focus is all about the business.  You've built your startup around an idea or product that you are passionate about and very protective of.  Sometimes this passion can get in the way of the real reason why most people become entrepreneurs: to make a profit.

Since moving to Atlanta, I've began to attend more and more seminars.  At my most recent seminar they were talking about the components of a great Executive Summary.  One of the things the VC's putting on the seminar focused on was the exit strategy.  It then occurred to me that the exit strategy is almost as important as the entrance strategy.  Sure, there are a lot more details that go into getting a startup off the ground, but once that happens shouldn't your end goal be to sell that business at the highest possible value?

It depends.  Some businesses are built to run in the family.  If you are in the consumer brands industry or a trade, this may be the case.  If you are in the tech industry or one related to tech, you might just be waiting for it to mature for 3-10 years and look to sell it.

I've noticed a distinct difference in the psychology behind different industries of startups.  If I focus on only consumer brands/products and technology, starting a technology company is like trading in the stock market.  Yes, you think it will do well and you have done your research, but your end goal is simply to sell it at a higher value.  Starting a company in consumer products is like investing in a 401k.  It is much more calculated.  You may move different funds around to invest more in certain areas, but the focus is how it will impact you and your life later on.  There is a lot more work involved, but in the end the possibility of a much higher return.

In the end, as entrepreneurs it all comes down to the money.  I've found it good for myself to be diverse.  I started out being focused with consumer brands/products but am moving towards technology.  There are so many possible niches to get involved in, it's really about finding the niche that you can be very successful in.  There is definitely a niche for everyone.

As an update, I'm waiting to hear back about the venue for the first meetup in August.  The speaker has been chosen and all of the details will be announced when they are finalized.  As always, thanks for the support and keep telling all of the young entrepreneurs in Atlanta about this group!