There is an interesting article on TechCrunch by Vivek Wadhwa on Is Entrepreneurship all about Exit?
I like this article as it raises an important question. Read an excerpt (emphasis mine):
What business schools teach, and the conventional wisdom in Silicon Valley, is that a tech startup must have a clearly defined exit strategy and focus all of its energy on reaching this final goal. In other words, entrepreneurship is all about the exit—wealth needs to be built by taking the company public or selling it to a larger player.
But must this be so? Technology entrepreneur and strategy consultant Sramana Mitra asks a great question: “What if the idea of exit was removed from the equation… what if the investor and entrepreneur agreed to a different model—the model of sharing dividends”?
While people, groups trying to build next Google or Microsoft may want to eventually sell or go public, start-ups like mine have no such glorious objectives.
When I started my company, I had these goals in mind:
- Make twice as much of what I made in my day job. (make = profits, not revenues)
- Enjoy the freedom and challenge of working on my own.
- Fulfill my passion of helping others thru teaching and leading (glorious objective #1: help a million people)
- Become an expert in online marketing, web programming & design, online training.
While I had no clear exit-strategy in mind, I joking tell my friends that if I can make Rs. 1 crore in revenues before I turn 31 (that will be in 2012 October) I would consider my startup as a success. That is around $250,000 for my western friends.
But that is not exit strategy. I don’t know if any company would ever consider buying me. I cant imagine the ridicule of going public. So my only exit option seems to be staying.
What about you?
What is your exit option? Do you agree with Vivek’s views in the quoted article? Please share your opinion using comments.