According to Bloomberg News, many successful entrepreneurs and coaches were asked how long must someone that has just set up a startup remain associated with it. Most of the answers included that it must be not more than five years that an exit plan must be designed. It does not necessarily mean by exit plan that you must leave it. But an approximate “sell-by-date” is desirable. In most cases, it has been seen that if you have set up the startup, you realize that you could have done it at least two years prior.
According to Andrew Gluck of IrrvrntVC, which is an early-stage venture capital firm believes that half a decade is enough time to build something that can last, however, not that long enough as well that you are prevented from attaining your next milestone.
Let us find out the five-year outlook outline plan that can help prevent entrepreneurial mistakes.
1. You will Build a Stronger and More Valuable Company
According to Bloomberg News, most of the founders of startups have an excellent team together. However, this sends out signals to the others that the company will be functioning with you in the lead, which decreases the business value.
If you are working for longer hours, this is not a selling point always. Instead of the above set up always establish a business with an adequate investment that can run without you. it is important to build a business as if you will not remain for long and an exit plan is in mind. This will also ensure that you do not have to take responsibility for just about everything.
2. You will Stay Focused
The initial years of any startup will keep you so much involved in ordering, schlepping, and accounting that you tend to lose the main objective and vision of the business. When you have a startup, it has a lot of hiccups and you spend time dealing with it aside from ordering, accounting. As such, in most cases, the dream is lost. Stay focused on your five-year exit plan.
3. You will Prioritize Career over the Business
Bloomberg News reports that it is a good thing to prioritize a career over the business. If you have a set of visions already set in mind, it becomes easier for you to answer questions like if the company will be able to function without you.
4. You can Avoid Questions like what if the Startup does not Work
In most instances, it is seen that entrepreneurs do not have a backup plan ready. This is reasoning enough for anxiety, especially when you go through a rough patch. One of the byproducts of a five-year plan is that you will have a vision plan of what you want to do next and how you must go ahead with it. It can be empowering if you have a backup plan in place should an untoward incident arise. It is best to focus on success rather than failure.
5. You can Leave the Startup at your Free will
Perseverance is one of the top traits that a successful entrepreneur has. Holding on to a non-performing startup can prove to be a shot in the leg.
