So you’ve had a great pitch, and most of the investors on board seem convinced. But, the question is yet to surface – What’s your exit strategy is a common, yet important question most of the investors ask. For an investor all they need is a high return on investment. Essentially, they’re also looking to:
• Gauge your level of commitment to building the business
• Understand your level of flexibility
• Know your thoughts about exit scenarios
While it’s important to understand the degree of significance for the exit question, it is recommended that you answer the question with clarity and confidence.
As such, clearly articulate that you want to grow your business, that you are committed for the long term, that you are flexible, and that you will work with your investors to do what is right and drives the best return on investment.
Just as a stitch in time saves nine, an apt and articulate response will go a long way in building up trust and gaining the confidence of your investors. So think smart, think great!