Deadly Sins

No exit strategy.

Your business plan should include an exit strategy, which you could consider the ultimate goal of your enterprise. Do you want to take your business public? Are you grooming it to be sold to a competitor? How about establishing it as a family legacy?

Many decisions you make will be influenced by your exit strategy. Evaluate your exit options together with any other owners of the business to determine what makes the most sense.

Without an exit strategy, especially when one or more principals are integral to the company, your venture will be jeopardized by stasis, breakup of the management core or loss of momentum.

This article was originally published in the August 2001 print edition of Entrepreneur with the headline: Deadly Sins.