Building to flip is building to flop
Another thing you hear a lot: "What's your exit strategy?" You hear it even when
you're just beginning. What is it with people who can't even start building
something without knowing how they're going to leave it? What's the hurry?
Your priorities are out of whack if you're thinking about getting out before you
even dive in.
Would you go into a relationship planning the breakup? Would you write the
prenup on a first date? Would you meet with a divorce lawyer the morning of
your wedding? That would be ridiculous, right?
You need a commitment strategy, not an exit strategy. You should be thinking
about how to make your project grow and succeed, not how you're going to jump
ship. If your whole strategy is based on leaving, chances are you won't get far in
the first place.
You see so many aspiring businesspeople pinning their hopes on selling out.
But the odds of getting acquired are so tiny. There's only a slim chance that some
big suitor will come along and make it all worthwhile. Maybe 1 in 1,000? Or 1
in 10,000?
Plus, when you build a company with the intention of being acquired, you
emphasize the wrong things. Instead of focusing on getting customers to love
you, you worry about who's going to buy you. That's the wrong thing to obsess
over.
And let's say you ignore this advice and do pull off a flip. You build your
business, sell it, and get a nice payday. Then what? Move to an island and sip
pina coladas all day? Will that really satisfy you? Will money alone truly make
you happy? Are you sure you'll like that more than running a business you
actually enjoy and believe in?
That's why you often hear about business owners who sell out, retire for six
months, and then get back in the game. They miss the thing they gave away. And
usually, they're back with a business that isn't nearly as good as their first.
Don't be that guy. If you do manage to get a good thing going, keep it going.
Good things don't come around that often. Don't let your business be the one that
got away