Have clear Exit Strategy for Investor

December 25, 2015

by admin_5nbc

You have done all the hard work, having started off from ground zero and built every aspect of your company and then come’s the stage of giving a take-off; this is where the need for Investor comes into picture.

So first you start networking with investors either on LinkedIn or any other professional sites, so first lesson you learn is to have a business plan done with a VC presentation or Executive Summary.

Once while designing Business plan the main important thing apart from all the other questions being answered with regard to revenue, growth, profits & break even. The final question how will you exit the investor.

So first you start networking with investors either on LinkedIn or any other professional sites, so first lesson you learn is to have a business plan done with a VC presentation or Executive Summary.

Investor is a force that gives you the take-off but after take-off you cannot hold on to investor for life, this is where the major mistakes happen where in a clear cut exit strategy needs to be brought in place.

Investor is like Good Samaritan, but he will not be with you for life, this fact has to be realized if you want to grow further. Having exit strategy’s gives clear understanding of your mission and vision to investor

Any business cannot be for life in the times of changing world we are living in so don’t go with exit strategy which says, we will buy back your shares or will go for IPO. In present scenario of changing markets and societies business shouldn’t be done with heart it should be with mind. If you can see the scalability of your business model being peak by 5^th year then exit strategy should be selling the business and going forward with another venture.

Specially for technology business where in things keep changing with the dawn there is no point in having built a big company and when products become obsolete then your own structure becomes a big burden.

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