| > | | | | instance planning your exit can get a little bit trickier. |
| One key part of entrepreneurialism is planning. | | | | It's less likely you will have direct competitors who |
| Although your business may change routes along the | | | | would look to buy your business, and therefore you |
| way, having a solid plan to work from can often pay | | | | have to consider the likelihood of achieving liquidity |
| dividends in saving wasted time, energy and money. | | | | through an alternative route. Maybe a company |
| Does your business have its liquidity event mapped | | | | would be able to achieve synergies through selling |
| out? Entrepreneurialism can be demanding, and | | | | your product to their customers, or integrating it with |
| drafting a plan can often be vital. If you have raised | | | | their existing technologies? Or maybe if you manage |
| venture capital then the chances are that your | | | | to promote entrepreneurialism within the boardroom, |
| investors will expect you to achieve liquidity at one | | | | a management buy-out could be an option?The |
| point in the future. One tough part of | | | | following are options to consider when planning your |
| entrepreneurialism is not only working out if you have | | | | exit:IPOAn IPO or initial public offering is when you |
| a good idea, but also establishing if it has the | | | | make your shares available on the stock market. This |
| capability to scale, get acquired, or go public. If the | | | | is usually the most liquid market for equities, however |
| answer to any of those questions is no, then it's | | | | you will usually require a sizeable market capitalization |
| essential that you establish what your long terms | | | | and stable earnings before this is an advisable option. |
| goals are. If you are not able to achieve liquidity, then | | | | At this point, there will be a firm price associated |
| the performance of your profit and loss account will | | | | with the equity you own in your business.AcquisitionIf |
| be the only business metric that matters. It also | | | | your company gets acquired then you may be able |
| means that, should you wish to move on in the | | | | to gets a much quicker exit than if you hold out for |
| future, you'll have to give up your businesses profits | | | | an IPO. If you intend to develop great technology, |
| with no realizable gains.One key part of | | | | but do not want to build the infrastructure to unlock |
| entrepreneurialism is planning. Although your business | | | | its full potential, this can be a great option. |
| may change routes along the way, having a solid plan | | | | Sometimes entrepreneurialism can be about doing |
| to work from can often pay dividends in saving | | | | what you do best, and then moving on. For some |
| wasted time, energy and money. If you wanted to | | | | people, that's starting companies and taking them to |
| start a broadband business, for example, then it | | | | a certain stage. Sell Your EquityIt's possible for |
| would be easy to think of potential companies that | | | | you to sell your equity while allowing pre-existing |
| might want to buy you at a later stage. And, the | | | | investors to keep hold of theirs. You may find that |
| market is certainly big enough to go public if you | | | | pre-existing investors are the best people to |
| manage to gain a decent percentage of market | | | | approach in this instance. However if the company |
| share.However, entrepreneurialism isn't always that | | | | has potential, a large pool of potential candidates may |
| simple. Some companies may have a completely new | | | | be interested. The board may also consider a share |
| idea taking on a completely new market. In this | | | | buy-back. |