All who work with entrepreneurs nag them about the need for an exit plan. Some are too busy. Others find the process too overwhelming. Still others are in denial.
Inc.com cites a study just released by PricewaterhouseCoopers that reveals how many entrepreneurs really don't have any exit plan in place or even in mind.
"In its survey of 364 CEOs of fast growing, privately-held companies called the 'Trendsetter Barometer,' PricewaterhouseCoopers found that 65% of the respondents said they planned to leave their company within 10 years. When asked about their exit plan, a majority of the respondents (51%) thought they would leave via a sale to another company. A measly 3% minority said they were counting on an IPO payoff. The survey's finding that CEOS have exit plans is hardly surprising: the fact that 43% of the respondents said they had done little or no succession planning is."
The findings did not surprise me. In fairness, fighting the daily battles that is entrepreneurship can cause many to slide exit planning way down the to-do list. When you are up to your behind in alligators it is hard to remember that you are there to drain the swamp. But, exit planning is important for every entrepreneur. I hope as more entrepreneurs are educated in the process of building successful ventures that we will see more pay attention to this ultimate goal for any private venture. Every entrepreneur must exit at some time--one way or the other.
