When starting a business, one should begin with the end in mind, says Rumeet Billan, on huffingtonpost.com.
While this might seem counter-intuitive, Billan believes that entrepreneurs should fully consider what might trigger an exit at the start of any venture. By doing so, business owners can provide structure and instill confidence in a team as well as potential investors.
By identifying exit strategies, business leaders can better manage 'event-driven changes, unintended consequences and volatility that all organisations face regardless of sector', she explains.
Businesswithoutborders.com agrees with the sentiment, stating that when entering into a sector it is 'often easier to get in then it is to get out'.
"For-profit organisations can rely on exit strategies that include the sale, merger or an Initial Public Offering (IPO)," says Billan.
"For not-for-profits, it's a bit of a different story as they cannot engage in a sale or an IPO," she adds.
Instead, funders generally have short-term or time-based exit strategies, which she says are tied to funding cycles.
The writer concludes by saying that there is no 'right' exit strategy and that it is impossible to plan for all scenarios. However, she says that as a business owner puts together business plans, they should consider their exit strategy as well as the potential risks and costs involved.