---
title: "Entrepreneur's Tip of the Week: Begin with Your Exit in Mind"
description: Every entrepreneur must begin their business with an exit strategy in mind.
---

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# Women's Business Blog

# Entrepreneur's Tip of the Week: Begin with Your Exit in Mind

Posted by Vicki Donlan on Sat, Jun 12, 2010 @ 07:06 AM

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You've decided to start your own business because you have a ["killer" idea](http://www.forbes.com/2010/06/11/great-idea-real-business-entrepreneurs-small-business.html?partner=alerts) that just can't fail. You've worked all your life for other people and learned what it takes to run a business as the [CEO](https://vickidonlan.hs-sites.com/Womens-Leadership-Consulting/) - **C**hief of **E**verything **O**fficer - to get it off the ground. You know that your idea will fill a void in the marketplace and has shelf life - meaning it won't become obsolete and can be scaled. You've saved enough to invest in your dream business and you have friends and family that believe in you and want a part of the dream. You've taken the time to map out your idea by writing a detailed business plan which will also help you in obtaining bank financing as you get ready to launch and perhaps VC funding if you require it. The [business plan](https://vickidonlan.hs-sites.com/Womens-Business-Coach/) demonstrates that you will be cash positive at the end of the first year of business and by end of year two you'll be making more money than you are now by working at your current employment. You're ready to start pitching the idea to funders, clients and vendors and you believe you have done everything an entrepreneur must do before launching their company.....but wait....what is your exit plan?

Many [entrepreneurs](https://vickidonlan.hs-sites.com/Womens-Leadership-Consulting/) are shocked by this question. Their answer is, "I have waited all my life to start my own business. I don't plan to ever sell it." Or, "I want to run my own business until I retire and then have my children take over the business." Or, "I know that I will be very successful and someone will want to buy my business because it will be very profitable."I say, "Really? Really?"

And, what if you become disabled or sick or your children don't want to take over your business or you aren't successful because you don't have what it takes to run your own business or when you are ready no one else has any interest in doing what you do? If you plan on ever getting VC money you better realize now you will need an exit plan. VC's are only interested in how they will get a return on their investment. As an entrepreneur you should be interested in the same thing....don't you agree?

The savvy [entrepreneur](https://vickidonlan.hs-sites.com/Vicki-Donlan-Bio/) plans his/her exit at the beginning. (S)he recognizes who the potential buyers in the market are for the business and may plan to partner in a small way with them sometime early in the company's life. (S)he certainly watches carefully what is happening in his/her industry and the industries that align with his/her business. It is never too early to plant seeds for an exit. 

Of course, if the plan is for a family succession, the[ entrepreneur ](https://vickidonlan.hs-sites.com/Womens-Business-Coach/)must get the family involved in the business as soon as possible. It is best to get family trained outside the business before bringing them in so that there is an opportunity to learn a variety of best practices from the industry.

An employee succession plan also requires planning but this is best worked through with your business advisors to make sure it is executed in the best interest of the business and you.

Having an [exit strategy](https://vickidonlan.hs-sites.com/hire-vicki-to-speak-on-womens-leadership-at-your-conference-or-event-/) in place will also assist the entrepreneur with plans for growth. Decisions can be made knowing that they fit into a long term plan for a successful sale. For example, if your exit plan is to sell to a large competitor it makes no sense to make your investment for growth in a direction that is incompatible with that business. You will be able to reap a greater return if your buyer is able to leverage your business in as many ways as possible. The principle of economies of scale is important to consider.

Finally, every business plan, like every roadmap, must have a beginning, a middle and an end. You may not be able to identify the who you will sell to, or the when you will sell, but planning for the how much is a responsibility you can't ignore. Begin your business with the exit in mind.

[HIRE VICKI TO SPEAK AT YOUR NEXT EVENT!](https://vickidonlan.hs-sites.com/hire-vicki-to-speak-on-womens-leadership-at-your-conference-or-event-/)

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