You're living in the moment. You're working tirelessly on your startup, trying to get it off the ground. But in the back of your mind is that tiny, hopeful thought: Maybe, just maybe, you could sell your company someday.
PluggedIn hosted a roundtable during which founders shared their exit stories and advice to fellow entrepreneurs.
Here's what we learned.
Do successful entrepreneurs have the goal of selling or do they focus on building and maintaining the business?
You can't think too much. Don't think in terms of size—whether or not you're building a small or large company. Instead, when you start something, create it with the goal of bringing value. Start it because you've spotted a problem in the marketplace that you're frustrated by and want to solve. Or as Ron Gura, co-founder and CEO of Gifts Project, told us, “When you start something to bring value, you'll have better chances than if you start something to make a transaction.” If you build it, they will come. And by “it” we mean a great product and company. If you've built something valuable, that will be recognized and someone will end up giving you a call.
Of course, it's okay to dream. You wouldn't be an entrepreneur if you weren't a dreamer. But you need to always focus on what's coming next—those short-term goals like landing your next client. Don't think about the sell until the call comes in. That's when it becomes your next short-term goal. Koby Menachemi, founder and CEO of Crossrider, had started seven companies that all failed. It got to the point in 2006 where he was living at his girlfriend's parents' house, was close to being broke when he started his company as a game. He developed it overnight and then realized there was a need in the market. His last thought was about an exit. There was some traction, some investors, and then some people approached to acquire the company after 18 months. The exit wasn't a target in the beginning, but after the calls started coming in, Koby was entirely focused on selling the company. It closed within three weeks.