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Exit

December 3, 2009

Many investors pontificate on how entrepreneurs must communicate their exit strategy right up front.  It’s argued that in order for an investor to invest he or she must understand how they’re going to get their money out.

I have started, built and sold  two companies and am currently working on starting my third.  Even though I have gone through this process twice on my own, I am by no means an expert because I don’t do angel investing.  Nonetheless, I am of the view that these investors who are advising “neophyte” entrepreneurs to focus on their exit are misguiding them at best and doing them a disservice at worst.

Building a company is a process, not a transaction.  An entrepreneur and manager must focus building their company up to being the best in its marketplace.  Define “best” however you want (market share, employee count, technological innovation, profits, growth rates etc.).

If a business is very good at what it does, then the rest will take care of itself

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