Building and establishing a company from the ground up is often the dream for many entrepreneurs – pouring their hearts and souls into their vision and seeing it transform from an idea into a living entity. But sometimes, the ultimate goal is not only to create, but also to create with a successful exit in mind. A profitable one initial public offering (IPO) or a strategic acquisition by a larger company can be how the story of years of hard work ends for many entrepreneurs, eventually leading to financial independence.

Having exited two of my own companies and coached countless others in the process, I've learned a lot from writing an exit story. Of course, the financial rewards are undeniably tempting, but it's also important to recognize that quitting isn't always the best option. In fact, a strategic exit depends on three key factors: recognizing the signs that the time is right, meticulously preparing your company for a smooth transitionand understanding when to hold back may be the wisest choice.

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1. Pay attention to the signs and know when it's time to get out

The decision to come out is not and has never been an easy decision that can be made overnight or in a single meeting. It is a pivotal moment that will affect an entrepreneur financially and shape the future of the business.

They say that time it's everything, and I couldn't agree more. Look for periods of favorable market conditions, such as high demand for your specific industry or technology. Just as my second venture, which took advantage of the booming market for big data in home care, aligned my exit with favorable market growth. The decision significantly increased the value of the company.

It's also important to recognize that sometimes, your skills are no longer the driver of your business growth. I experienced this, which led me to bring in exceptional talent as my last company matured. That decision strengthened the company; if I hadn't realized how my contributions had grown, the company would have struggled to scale new heights. Granted, you may feel like the most logical option is to simply exit the company. However, returning to one the role of mentoring it can be a much better alternative so that you can continue to contribute strategically without hindering the growth of the business. But again, this is not another decision that can be made lightly; requires full evaluation.

2. Prepare your company for a successful exit

Before you get carried away by the dollar signs, you need to address one of the most important aspects of a successful exit that is often overlooked – proper care. Traditionally, the focus has been on the buyer due diligence process. However, it is equally important for you to investigate the buyer. Research your buyer's past purchases, run a “background check” of sorts, and get information on how their previous purchases went. If you can, contact their current employees as well. That doesn't make you a weird, paranoid salesperson; it simply demonstrates how you are committed to looking after the business even when it is sold, ensuring it runs smoothly and thrives in the future. After all, due diligence is a two-way street. This level of scrutiny also allows you to understand their culture. A costly mistake I made on my first outing was losing focus during the four-month buyer due diligence process. My company's growth stagnated and our rating went down. Red flags are just as important as dollar signs, so don't think twice about walking away if their values ​​conflict with yours.

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3. Develop a post-exit strategy for ongoing engagement

An exit strategy can undeniably motivate many entrepreneurs – a great chance to make money and get ahead. However, it should not always be the end goal. Does money weigh more than yours? LEGACY and vision? Maybe. But that is yours to decide. Money is only one major factor when deciding to date; for me, it is never the most important thing. I value living my best life as an entrepreneur, making sure that all of my ventures create freedom for me and my family.

Suppose you've successfully built a business that runs smoothly without your constant intervention and still gives you financial freedom and time to pursue other passions. In that case, I think selling might not be the best idea. Personally, I also find it very satisfying to run and further develop a thriving business, often more satisfying than getting paid once.

But assuming you followed his sale and got out, what comes next? You start with a different vision and start with new strategies. Wouldn't it burn you? Would it make you more fulfilled to start over and over, repeating the same process of creating and selling for money? Maybe, or maybe not. The point is, you need to develop a post-exit plan that doesn't dim the light of your burning passion. It's okay to pause and enjoy a well-deserved break. Don't lose the north star; try to make your life more fulfilling, far beyond money talks.

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Build a legacy, not just a series of sales

The definition of happiness and success can vary from person to person, depending on what motivates them to wake up each day. Is it the everyday that motivates you? Or maybe the challenges of building something from the ground up? Regardless, you should remember that as an entrepreneur, success can also mean recognition RESTRICTIONS and knowing when to stop. This goes beyond ensuring the future success of your creation and dancing dollar bills in your head. Entrepreneurship is about more than just money. It's about your legacy – learn to choose lasting impact and personal fulfillment over big paydays.