You have an idea or a prototype, and you are determined to start and grow fast, but the main question is: where do I start?
Don’t worry. You are not the only person who has been there. Actually, every single person who has started their own business has been there. There is not just one way ahead, but we can share some tips.
Here is one of my most important tips:
“Start your business model from the back, start with the exit.”
OK, I can already see your eyes rolling and hear you typing angry comments, but here are some pros as to why you should develop your exit strategy at a very early stage:
Knowing who the big players are that might be interested in your idea/company does not mean you have to sell to them. This will help you identify faster: where your market is, competitors, who are your ideal customers, which competition is doing well and which competition is doing poorly compared to you. Do your homework; you might be surprised by the useful facts you find out!
Knowing your exit strategy might actually help you shape up your own business idea and identify your next steps.
Knowing your exit strategy might give you a card in your hand in case the going gets tough.
Knowing your exit strategy will show seniority and maturity while negotiating with investors at any stage. It will bring peace of mind to the investors being angels or VC. It shows that you have done your homework and that you think ahead. At some point, it can even provide a way out for your investors.
Knowing your exit strategy leaves you in the driving seat in case the chemistry between you and the investor is off. You might team up with your potential exit to buy out the investor who is not supporting the growth of your company.