The Best Exit Strategy is to Not Have One

Exit Strategy (album)

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Much of the tech startup media is obsessed with big exits, which make for fun-to-read stories. In a blog post today Jason Cohen writes about his new WordPress startup and provides a good answer as to his exit strategy in the comments:

Success for me is defined as: Creating a company that generates at least $30k/month in profit after paying everyone reasonable salaries, while it’s still growing.

Jason is building his company to last, as most entrepreneurs do, and will likely sell his business if the right offer comes along. The key is that he defines success as getting to a certain level of profitability while still growing. Today I brought up that blog post with three entrepreneurs and asked about their exit strategy. Every single one said they don’t have an exit strategy and want to build up their company to a point where they can hand it over to someone else to run it while still growing. That sounds like a great plan.

6 thoughts on “The Best Exit Strategy is to Not Have One

  1. I am in the process of launching the above web site selling high-end gift items to owners of expensive yachts. I look for only unique items that can be personalized with the boat or owners name and image. My plans are to have everything ready to go by January and I am currently working with web designer from Elance.com in India. So far the firm has been very responsive but there have and continue to be some software issues which they are taking care of . My level of satisfaction so far is ranks about 70%. I would be interested in following your Blog and getting the comments of those who are also in the start-up process of building their first $1,000,000 company.

  2. Interesting that others have no plan. That’s ok I think, but not if your notion is that you van “hand it over” and someone else continues to grow it.

    That happens sometimes, but more likely they run it into the ground. The notion of the retired founder is largely mythical.

    Selling your stake so that you don’t fundamentally care, that’s sensible.

    • Thanks Jason. Great point that companies handed over to someone else are typically run into the ground and that selling your stake puts in a position to no longer care.

  3. Pingback: Founder Math for VC Money to Make Sense « 10,000 Startup Hours – David Cummings

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  5. Pingback: When an Exit Strategy Discussion is Required | David Cummings on Startups

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