Last year, I was working on a business that I was convinced could be bought by a huge media conglomerate. In fact, before I had a business model, funding, prototype or even a single customer, I was ready to sell the business! Needless to say, the business didn’t work out. My passion was focused on the wrong place. And I’m not the only one. Many entrepreneurs I speak to are looking for an exit strategy much earlier than even their entrance strategy.
I read an article by Mark Cuban many months later and the second line struck me:
- Don’t start a company unless it’s an obsession and something you love.
- If you have an exit strategy, it’s not an obsession.
Who is Mark Cuban? If you haven’t seen him on Shark Tank, or aren’t a fan of the Dallas Mavericks, just know he a billionaire who built his way up. And, yes, in retrospect, that business I was working on was not an obsession – making it an #entrepreneurfail.
From my experience, here is a checklist of red flags to warn you that you may be too interested in an exit strategy too soon:
- You are more interested in selling the business than in creating what your business needs to sell.
- You haven’t talked to a single customer, but are sure that future owners of the business will.
- You are browsing potential investors of the company, before creating a proof-of-concept yourself.
- You don’t want to learn too much industry knowledge since it won’t be needed after you sell the company.
Do you agree with Mark Cuban’s quote about the exit strategy? Let us know in the comments below.
Read more about this topic and check out our comic on this post by 20-year old serial entrepreneur Jeet Banerjee.
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asha chaudhry
hi kriti,
nice headline!! makes so much sense!!!
but this is the clincher – “If you have an exit strategy, it’s not an obsession.”
i think this is an interesting topic to touch on. especially for the young wide starry-eyed E’s who read and dream about big exits!
Kriti B Vichare
Thanks Asha!! I’ve seen it so many times…!
Karan Pandhi
Hi Kriti,
that’s exactly what Entrepreneurs should be doing, do what they love and build it and not sell it to someone else who might love the idea but not the way it is built.
Every entrepreneur should have their own perspective of why they are doing something, is it pure dream, a passion, or is it because someone else did it so I too can do it.
Awesome read, and Asha mam said it truly a catchy header.
Kriti B Vichare
Thanks Karan! Glad you agree…what are you working on?
Lalit Advani
Many people have the opposite view of never exiting as well. Sometimes one misses opportunities by failing to exit at the right time.
Karan Pandhi
Hi Kriti,
I’m a foodpreneur, and also an adviser on how to save and increase wealth in safe ways,
Currently working from home and waiting for my funds and a good location to start.
It has been a 13 year old dream of being in the food world, so now its on its way.
Kriti B Vichare
Awesome! Best wishes!
Kriti B Vichare
Good point Lalit – there is a sweet spot – not too early, not too late!
Karan Pandhi
thanks a lot Kriti 🙂