When you start a business, it is important to think of an exit strategy as well. Whether it is five years down the line or ten you should be sure about how to exit.
With acquisitions of startups becoming big news all around, many young entrepreneurs are looking at getting acquired. Most startups have acquisition as their exit strategy and are working towards it. They are aiming at positioning themselves such that large firms such as Facebook and Google eye them and acquire them in the future.
If you are looking at the same exit strategy, the following tips will help you significantly:
Focus On The Market
Your product should be good enough to spread buzz across your target market. This means that your product should be highly attractive. A large company will pay you for acquisition only if it is sure that it will get even better returns. Through your products you should be able to prove that. Of course, customers will purchase from you and that is why your focus should be on your customers. Acquirers will quietly notice you.
Answer A Need
Your product should be important or essential to your customer. When you are able to meet a particular need, you will have an immediate winner. This will make your company very popular because your customers will need you. It is will be important for them to buy from you and not just optional. There is a lot of competition in every niche for sure and that is why your product should not just answer a need but it should be able to do it well. This means that your customers should come to you for the answer (your product) because your product has at least one USP that sets it apart.
Hire The Best
Large companies eye startups that have amazing talent. This is why it is recommended that you focus on hiring the best and optimizing as well. Your work environment should be challenging enough to leverage your employees’ skills for the better. Such work culture will encourage innovation and that is when acquirers will be confident in your company.
As you can see, readying yourself to get acquired includes working hard to impress customers and hiring only the best. These are the two main departments to focus upon. Alongside you have focus on efficiency and consistency. It is vital to be efficient at every point while working lean (bootstrapping).
If you are looking to get acquired you should focus on your market and your hiring strategy. You shouldn’t focus solely on acquirers and wonder what they want. You should concentrate on impressing your target market and leveraging your business by hiring the best talent. When you do this successfully, acquirers will definitely start checking you out.