Why Every Entrepreneur Needs an Exit Strategy: My Personal Journey

When I started my entrepreneurial journey, selling my business was the furthest thing from my mind. But as time went on, I realized the importance of an exit strategy in ensuring sustainability and success.

Here's my story.

The Initial Phase: Starting and Growing

Being a serial entrepreneur, there's nothing I cherish more than the thrill of starting and growing a business. The satisfaction that comes with witnessing an idea transform into a thriving enterprise is unparalleled. But, like many entrepreneurs, I was trapped in a cycle of birthing a business, nurturing it to success, and then losing interest when the going got mundane.

The Problem: The Fading Passion

The pattern was clear. I'd be all in during the early days, driven by excitement and passion. But as the years rolled by, the repetitive, managerial aspects would kick in, leading to a gradual decline in enthusiasm. With my interest waning, the business would suffer, eventually prompting me to move on to another venture. This cycle was exhausting, and I knew something had to change.

The Revelation: There's More Than One Way Out

It was during a funding round in 2020 that I had an epiphany. Conversing with potential investors about my plans to take my business global, I was repeatedly posed with the question, "What's your exit strategy?" To my surprise, I had none.

For long, I had the misconception that no one would be interested in acquiring my business. Why? Because I perceived my business as "boring." But as I soon learned, stable and straightforward boring businesses are precisely what investors seek: low-risk, easy-to-manage entities that promise consistent returns.

Shifting Perspective: From Entrepreneur to Investor

Those pivotal conversations in 2020 marked a turning point in my entrepreneurial journey. They shifted my mindset from viewing myself as a business owner to an investor. I realized that not only was I the main investor in my business, but my business was also an asset of value. The transformation in my mind was profound. I transitioned from "I am my business" to “I own this asset”, recognizing my venture as a distinct asset, separate from my identity.

The Takeaway

Every entrepreneur should have an exit strategy. Whether it's a sale, a merger, or a succession plan, understanding your endgame can provide direction, offer motivation, and, most importantly, ensure you maximize your returns.

If you're an entrepreneur with a business generating over $2mil in annual revenue and haven't yet considered an exit strategy, it's time to start. After all, being prepared for the end can often mean making the most of the journey.

To a brighter, freer entrepreneurial future!