NO EXIT ... Strategy - Part 1
No Exit Strategy
So many entrepreneurs, myself included, make a massive mistake when starting a business. All the experts tell you from the beginning you should consider what your exit strategy is.
I can’t tell you just how wrong that is.
19 years ago when I started SCOTTeVEST, I was obsessed with thinking what my exit was going to be. As a result, I was constantly thinking about the short term gains rather than the longer-term opportunity.
I kept thinking that someday I needed to sell the business and cash out. That thinking lead to some really short sighted business decisions.
I have recently learned that instead of thinking with the end in sight, you should consider the journey part of the end, and run a business that you enjoy doing and do it well.
Don’t think about the end. Think about the journey along the way.
There is absolutely nothing wrong with running a business that does not grow to be $100 million. I believe that so many people are obsessed with the unicorns they lose sight of a good family and business that cares about their employees and their customers equally.?
I have so much more to say about this topic. I am considering writing a series of articles ultimately culminating into a book on this subject.
This is the first in the series?.?? . So, what do you think, is this something of interest to continue writing about??
CEO - Eco-Forza
4 年Ask Trump. His strategy has been launch, use other people's money to hype value then file bankruptcy and exit. I like that strategy
So right you are Scott. If you are so busy focusing on the "OUT" you are not truly "ALL IN." I kind of feel like Cortez in a way. There is only one way to go and that's forward. When and if my company gets to a point of me needing out I had better of created a company worth selling. Culture, process and values all play into building a company not only worth selling, but even more so holding onto. I have made so many mistakes in just the running of and doing work in the business that it seems my roll is in learning and doing better every day. Am I perfect....hell no. But I will try to correct my mistakes and move forward. Can't say as I ever plan on getting out of my company. I am too focused on building it, being a better owner, and seeing how far I can go with it. You have a great company Scott and I look forward to seeing what you do with it. Cheers!
Digital Product Management Leader | Strategy Development | Roadmap/Requirements | KPI Planning | Acquisition Due Diligence | Org Planning & Team Leadership | Budgeting | Agency Relationships | Start-up Expertise
5 年The SCOTTeVEST business is great. The products are great. And it's wonderful this business has worked out. As to this idea though, while also a beautiful thought, one of the many challenges with any startups, and dot coms in particular perhaps, is financing. Investors do want to understand an exit plan. Or at least, how they get some kind of liquidity event. Personally, I don't see anything wrong with - and there's a lot right with - the so-called "lifestyle" company. But unless it's friends/family investors willing to take dividends for liquidity one day, I'm unclear on how the pitch deck/meetings are going to look with either or both angels or VCs. Maybe if startup requirements are low enough it can be done with debt and personal guarantees, (risky!), then ok. But otherwise, I'm just personally unclear on what the proverbial death-by-powerpoint-pitch-deck looks like. VC math has been made somewhat transparent by some of the top dogs who blog. They factor in failures. Meaning they're targeting/hoping/betting on 6x-10x returns, (or really higher), to cover that. Maybe new crowdfunding options can help here, but everyone's going to want to know how they're going to get returns, yes?
Chief Revenue Officer at ECD Automotive Design | Driving Growth, Innovation & Excellence in Luxury Restomod Automotive Manufacturing | Marketing, Sales, and Business Strategy in the Automotive Industry
5 年See recent White Castle story on CNBC. I agree, we need more leadership thinking about long term profitability and stability. https://m.youtube.com/watch?v=Jw84i5Pm9YA
AI & Marketing Software and Strategy Research Analyst | Architect of High-Growth B2B Ventures |?? SaaS Marketing Strategist | C-Level Consultant | Published Author I Successful AI projects for revenue
5 年Wow! I like this a lot. I think the working towards a "exit strategy" is toxic. Entrepreneurs should build a good business, be customer obsessed, profitable. That will make them rich and comfortable. I think you have done this with ScotteVest. We will remember the convenience of the eVest even when we travel on future airlines where bags are not a problem.