Why start a vision that ends in exit? It’s a very strong culture we see in Silicon Valley. In the last 20 years it has become fashionable to start businesses to exit them. Longevity is difficult to sustain, so there aren’t so many family businesses around these days.
Part of the reason for the exit culture is that larger companies use smaller companies to help fuel their innovation and growth. Entrepreneurial businesses have become feeders to their larger counterparts, often with mixed success.
Generally speaking, the first-time entrepreneur wants an exit. Selling the company can clear debts, pay school fees or enable holidays, for instance. However, many first-time entrepreneurs sell their businesses too early and most sell the best business they’ll ever own. How do you know when’s the right time to exit? When you’ve built a sustainable business and when the market is ready. There are some telltale signs for this:
▪When the economy is good and/ or people express interest in your business ▪When it’s growing ▪When the value offered is equal to the value of the idea (the dotcom boom in the 90s was victim to ideas having greater value than the reality, which may again be emerging as a trend)
Mostly, the right decision to exit will depend on your
gut instinct, how well you know your business and how well you understand the risks and opportunities you face: all you can ever predict is where your business is today.
The most common mistakes people make when exiting their business are: ▪ Poor understanding of the exit process, as they get flattered by unsolicited offers. The way round this is to appoint a good adviser. ▪ Being unprepared. Some businesses are completely owner dependent. Others lack substance in terms of internal operations, processes, controls, corporate governance, patent protection etc.
From all the chapters in the book, which are the most important?
They’re all important! But if you push me, I’d say Financial Management, Culture and Branding and Entrepreneur to Leader.
What core myths does your book explore? There is a lot of talk about entrepreneurship. Much of it is theory and hype. Building a great business is challenging and the notion that anyone can do it is simply not true. Huge passion, energy and commitment are required. You have to be well rounded and multi- faceted to build a successful company.
From Vision To Exit is available from Harriman House
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56