Why an Exit Strategy is not as Valuable as Many Believe

Is an exit strategy really necessary?

Writer Vivek Wadhwa is a visiting scholar at UC-Berkeley and senior research associate at Harvard Law School, among other titles. At first glance, he doesn’t seem like the sort of person that would advise against an exit strategy, an entrepreneurial must-have. But that is exactly what he is suggesting to budding entrepreneurs: savor the journey and ignore the destination.

He questions the motives behind building a business just to relinquish it to the hands of an investor or through a buyout. Even if profits are the main concern, holding on to and developing a business may net the largest dividends. And don’t overlook the obvious: running a company with your particular set of ethics ensures that you’re building the sort of business that you would want to work for.

Wadhwa questions the norm in this article for good reason. Occasionally, the predetermined guidelines of entrepreneurship lack common sense. Why build the business of your dreams only to employ an exit strategy?

CA
Contributing Author

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