Mistake 17: Lacking an exit strategy. "Have an exit plan, and create your business to satisfy that plan. For instance, I am thinking I might run my new business for two years and then get out of it. I think it's an opportunity to make a tremendous amount of money for two years, but I'm not sure [whether] it's proprietary enough to stop the competition from getting in. So I'm in with an exit strategy of doing it for two years and then winding down.I had thought that an "exit strategy" was a trade sale or IPO; and the
no-exit alternative was a sustainable business (e.g. life-style business).
But the above makes sense, for a great opportunity that looks hard to
defend.
I don't like the idea of quitting after two years. It seems
dodgey somehow. I'd rather create a sustainable, living business.
But my start-up idea is a software library, and they are infamously easy
to reverse-engineer (e.g. open source). So an exit strategy could be to
make money for a limited time, then make it free. I'm
really lacking clarity on this... and would appreciate your new perspectives.
The above quote is from John Osher (serial entrepreneur): http://www.cpd.ogi.edu/mst/capstone/17Mistakes.htm
Previously on HN: http://news.ycombinator.com/item?id=221750
