Consider Your Exit Strategy

What's the end goal you're looking to reach with your company? Do you want to build something that you can run for the next 30 years and pass on to your kids? Do you want to make a bundle of cash in a few months and then close up shop? Or do you want to build something with value that you can sell to a larger company for a nice lump sum? It's important to understand and conceptualize your exit strategy (if there is one) so you can work toward that goal.

Without knowing what you ultimately want to achieve with your business, you're not likely to carve out the best strategy for getting there. I've found that the most effective way of working toward an exit strategy is to work backward. First, set a goal for yourself—for example, you want to build a business that you can sell in three years for a desired amount (that's up to you as part of your goal). Then work backward from there. How much do you need to make in terms of revenue and profit for it to be worth that much? What do you (realistically) need to make in each of the next three years to hit that goal? Once the revenue numbers are in place, you can determine how much you need to sell, and at what margin, to hit those numbers. How many customers or site visitors do you need to get there? How will you let them know about your site?

By understanding your ultimate goal, you'll be in a better position to take the right steps to get yourself there.

(MLA 8th Edition)