Is Hard To Do!
It is a good idea to formulate some kind of an exit strategy, evening during the early stages of the startup. Pamela Dennis (Exit Signs) presents eight specific steps to consider with regards to planning an exit. According to Pamela; 87% of small and mid-size business owners don’t have an exit strategy or plan, it’s lost in their desk, or they get pushed out under unfavorable terms.
Exit Strategy… Before Departure
- Lead your way out, rather than get pushed out: Lead the process, involve others, make improvements where needed (increase value).
- Build a strong case for selling business: hard data, historical and projected forecasts.
- Anticipate reactions: Customer relations, continuity, retaining best talent after departure. Improve business processes and broaden revenue streams.
- Build relationships: The best buyers emerge over time and through longer relationships (cultivate these).
- Valuation: Seek out guidance on how to fine-tune the startups value (for the buyer), identify strengths and weakness which can be enhanced before the sale.
- Continuity: Begin reinforcing the culture in order that it will survive without you (health check).
- End Game – Personal Interest/Goals: Try to define what Does and Does Not appeal to you (the excitement of a startup vs. fighting with stockholders). Determine at what point this transition might occur, and plan exit accordingly.
Source: Pamela Dennis, Exit Signs: The Expressway To Selling Your Company With Pride & Profit
The best time to exit a startup is when you don’t need to (strong balance sheet, and not desperate).
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Question 1 of 6
Onboarding refers to; weekly meeting where founders ‘stir genuine emotion into their employees, and speak about the current and future state of the company’?CorrectIncorrect
Question 2 of 6
To create a High-Performance Machine, during the establishing stage; you want to focus on output or progress (not input), and avoid ‘measuring motion & confusing progress’?CorrectIncorrect
Question 3 of 6
During the Establishing Stage, large equal’s more complexity and bureaucracy. Which of the following actions does James Allen (Bain & Co.) recommend in this stage?,CorrectIncorrect
Question 4 of 6
According to Bain & Co., the three primary Founders Mentality traits include; sense of insurgent mission, an obsession with the front line, and successfully battling external factors (competitors, regulations, and technology)?CorrectIncorrect
Question 5 of 6
James Allen recommended that; To avoid the debilitating impact of the 20% Rule, Black Sheep, and Heroes, the founder should: Link all efforts (administration, hiring etc.), to a well defined core strategy?CorrectIncorrect
Question 6 of 6
The ‘Curse of The Matrix’ according to J. Allen (Bain & Co.) refers to the fragmentation of customer experiences?CorrectIncorrect