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Start-Up With An Exit Strategy: Why you can’t ignore the endgame in your business plan
It may feel strange to talk about leaving your business when you are in the early stages of building it. However, having a clear exit strategy is vital to securing investment and achieving your financial goals. Clarity around your exit enables you to keep a focus on two critical objectives — retaining as much equity as possible and building valuable assets. Together, these are the vital components that will determine the amount of money you walk away with when you leave your business.
Your exit strategy is also an essential part of any pitch for investment. During every round of the Fundraising Journey, potential backers will expect to hear how you plan to exit the company. For them, any investment is finite, and they’ll hope to cash out in three to five years and make a sizeable return. They’ll only choose to invest in your business if they believe the return will be higher than if they put their money in the bank or played the stock market. So, you must provide an exit plan every time you pitch.
Benefits of an exit strategy for investors
When you pitch to Angel Investors, Venture Capitalists or any other big-money investor in the early stages of a Fundraising Journey, you are selling them a vision. They can’t look at…
