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PITFALL: No exit strategy

Another basic question Scheufler Law asks entrepreneurs is “What is your exit strategy?” More often than not, the response is a blank stare. Entrepreneurs are frequently so excited about the prospect of starting a new business that they do not think about their end goal. Do you want to build a business to leave a legacy in your industry? Are you creating a family business to pass on to your children? Do you plan to sell the business and retire on a tropical island? Your exit strategy helps to plan the structure, financing and growth of a business. Without this, you may be playing catch up as the time to enact that strategy approaches, which can delay exit plans and be unnecessarily expensive.

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