The first lesson every entrepreneur must learn is : YOU are NOT your business! It is difficult when you have put everything you have - blood, sweat, tears and money - into getting your company up and running to think about it separately, but you must if you want to grow a successful business long term. You see - You are mortal and have an expiration date. Your business does not and should not die just because you must. With this fact in mind, every entrepreneur MUST always keep a potential exit in mind.

How you do this is important to your current and long term success. First, every decision you make must be a win for the business rather than a win for you. For example, when deciding on a new hire, ask yourself if the candidate will be a value add for the business not just for you. Too many entrepreneurs hire someone whom they like and have similar characteristics. Your company does not require two of you. What you need are team members that complement your skills. The best case scenario is to find a key employee who can, at a moment's notice, step up to lead operations - which in the early stage of your business you are handling along with everything else.

You see, the first question a buyer will ask about is the talent and commitment of your employees. Having someone who is in the position to lead the business for a new owner puts more value on your side of the equation....yes, more money in your pocket. Remember, any potential buyer must already see you separated from your business. If they don't than the fear of losing you when they buy the business will trump any thoughts of finalizing a deal.

Second, when making the decision to merge with another company or purchase a similar business to enlarge your organization make sure that the combined companies are worth more than they are individually. It sounds obvious, but too often entrepreneurs are so excited to expand that they make the mistake of joining forces only to find out that together the businesses are worth less. This is a simple matter of creating a balance sheet that is more than what each business is doing on its own. If the combined organization will have economies of scale in operations but at the same time be able to expand sales than the purchase more than likely will aid in the value and in the likelihood of an eventually exit. If, on the other hand, the combined businesses do not provide the opportunity to expand sales and cancel each other out than beware...the new entity will not benefit your exit strategy even if it does make you feel more important.

Every decision you make in business will affect how the company develops as an organization. Like a baby, your business must crawl before it walks and walk before it runs. But also like a child it needs independence eventually to thrive. Always keep your exit in mind.....