What is your exit strategy?

We've all heard the mantra, "Start with the end in mind". It particularly holds true if you are thinking of creating a business or moving technology to market. There are many options to exiting and lots to consider then choosing one over the other.

A Dozen Questions to Consider After Selling Your Business

A recent trend has been to exit sooner than later, usually about 3-4 years after the inception of the startup. The chief evangelist of early exits, Basil Peters, explains it this way:

Here are some questions to ask yourself sooner than later:

1. Do you have technology, a product, or a business?

2. Do you have what it takes to scale?

3. Are you looking for an early exit or something else that will take much longer and involve more risk?

4. Is there a market appetite for a merger or acquisition?

5. Have you created the necessary policy and procedures and oversight necessary to be ready for prime time when the buyer knocks on the door?

6. If you are building a lifestyle business, how much do you need for your lifestyle?

7. How will you value your company or find someone who can?

8. Have you bootstrapped enough so as not to dilute your equity at the exit?

9. How will you reconcile the demand to scale quickly with the time delays that are part of clinical validation, testing, patent filings or regulatory approval?

10. Have you validated your business model enough, secured high profile contracts and told your story in a way that will make your company an attractive acquisition target?

Finally, if you exit, what will you do with the money and deal with the consequences of tax and estate planning?