Exiting your business

- As you build your business, make sure you're clear…on whether it's a lifestyle business…or if you're looking to exit…because it has huge implications…for how you're going to fund it.…If your business is built to exit, your investors will want…to know how are you going to exit.…Will it be by acquisition?…And who might buy your company?…Will it be a sale just to other owners?…Now if you say we're going to do an IPO,…it sounds a little bit silly, especially in the early stages…of running a business,…so be practical about saying what your exit might be.…

If it's a lifestyle business, just understand…that you'll get fewer people…who are willing to invest in that.…When you lay out your exit plan, expect an ROI.…Your investors will.…What's the return on the investment…that they're going to get?…What's the timing they should expect it on?…Your investors will want their money back and then some.…I had a startup approach me at one point,…and they were seeking investment,…but it wasn't clear what the exit would be.…They couldn't tell me what my return on investment might be.…