Your exit strategy can have an impact on many aspects of your business.

It includes its legal structure, the types of revenue models you should use, the tradeoffs between investing for long-term growth versus investing for short-term growth, the types of investors you should seek, and so on.

 Even if you leave the business due to burnout, business failure, or boredom with your company, it is still beneficial to plan your exit ahead of time.

 Entrepreneurs can maximise their take-home pay and sweat equity by thinking logically about various exit strategies from the start.

 It is critical to plan your exit strategy as soon as possible!

 Even if you have no plans to exit your company in the immediate future, it is critical to consider your choices and have a plan in place.

 This is due to two major factors.

 First, a concrete exit strategy allows outer investors to make reasonable calculations of the timeline and expected rate of return on their investment, increasing the likelihood of an angel or VC investment.

 Second, determining how you want to exit allows you to structure your business in such a way that your return is maximised in the event of such an exit.

• Entrepreneurs are remarkably unlikely to obtain equity funding from external investors unless their pitch and business plan include an exit strategy.
• Entrepreneurs should conduct research to determine how and when similar companies in similar markets were able to exit.

In the case of externally-funded startups, this is most often accomplished through acquisition by a larger firm and, on rare occasions, through an IPO.

Furthermore, business owners should provide investors with an idea of the magnitude of their potential return.

If you want to be acquired, being the first mover in your field and dominating your niche will make you more appealing to large corporations.

Given that your core team will be acquired as part of the transaction, increase the value of your company by hiring.

To reduce the likelihood of a minority investor opposing your acquisition plans, ensure that all of your investors are completely on board with your exit strategy.

The acquiring company will appreciate it if your company does not have too many shareholders, as this minimises deal difficulty and potential roadblocks.

Working with a few large investors rather than a slew of smaller ones will make you a more appealing acquisition target.

If your exit strategy includes stepping away from day-to-day operations and turning your company into a cash cow, you should look for a business model that is not reliant on you.

This will necessitate the development of a systematised model that can be run by ordinary people without the need for super-stars such as yourself.

You should be functioning on your business rather than in it so that it can stand on its own.

 Rather than waiting until the problem confronts you, consider your exit strategy to be part of your initial business concept.

 By exiting wisely, you can optimise financial return for shareholders and investors while leaving your venture in the hands of people you trust.

 It will also provide you with the financial means and peace of mind to move on to the next stage of your life!

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