Thinking about your exit strategy? – Why entrepreneurs should play the long game

You run an out-of-this-world business. Go you! Things are going well and after several years of arduous work, you have supporters, clients, and a team. And for some reason, all you can think about is coming up with a plan of escape. It's what the business community advises you to do. But is this best practice? Perhaps not. We need to change our approach when startups are fuelling the economy. It's time for business owners to focus on building exceptional companies rather than constantly worrying about their exit strategy.

Why business is not just about making a quick exit

While receiving a lump sum payment for your work sounds appealing, there is a compelling case to consider the broader picture and re-examine conventional thinking.

People spend years honing their skills and becoming experts in their chosen fields and after a sale, there is a chance that any new endeavour won't succeed. Instead of obsessively trying to change your interests and job to something that might not work out, focus on improving your skills and building a legacy.

You can be an entrepreneur over the age of 25

If you were to read any entrepreneurial publication, you could consider yourself a failure if you've reached the age of 26 without being wealthy. Before you turn 25, you should have started a game-changing company, sold it for millions of dollars, and moved on to your next big thing, according to all the benchmarks. But to put yourself under that much needless stress is a recipe for dissatisfaction.

We can all agree that 25 is relatively young. At that point, half of the population still aren't sure of their career goals, and the other half will probably change their views later. A 2013 study found that the typical man doesn't reach emotional maturity until he is 43. Women get there quicker at 32 years of age. So why subject yourself to that added pressure? Granted, most of us have a desire to gain wealth. Money is one of life's necessities. However, nothing about starting and sustaining a successful business suggests failure. We must reassess what success means.

What's more rewarding? Quick sale or business growth?

Redefining success entails recognising the worth of your work. And for many startups and business owners, building a sustainable company with a sound plan should be a cause for celebration.

It is worth mentioning that there are situations in which selling a firm is the only practical course of action. Selling makes sense if you lack the funds to grow your company the way you want to or if you know your product would succeed under the wing of a more established company. Selling in itself offers a sense of satisfaction. But if you are working on your company and making it the best it can be, that’s even more of a reward.

Additionally, it creates the possibility of a better buyout deal in the future. If you want one, your exit will take care of itself if you concentrate on growing your firm.

Acquisitions - easy get out or end goal?

Entrepreneurs still hear advice to develop an exit strategy. Why? Because acquisitions are simple in the grand scheme of things. You can escape some of the most challenging work by selling your company as soon as it starts to be possibly profitable. And that's fine, you might find that appealing. However, there is no comparison to the joy of witnessing your small, hazy idea develop into a viable business under your direction. The acquisition of a business is always a possibility. A company's main objective should always be growth.

Building your own company was once the endgame. If your business could support your career or even just a portion of it, you would be a success. But somewhere along the way, we've changed. We are creating an economic environment that prioritises quick results over long-term success.

It's time to acknowledge that creating a firm and maintaining its growth, together with your professional expertise IS a worthwhile goal. Entrepreneurs need to stop concentrating on their exit strategy and commit to continued development, being the greatest in their area, and protecting their legacy if we want to bring sustainability back to businesses.