Startups looking for angel investors or venture capital (VC) absolutely need an exit strategy because investors require it. The exit is what gives them a return.

Exit strategies related to startup funding are quite often misunderstood: The “exit” in exit strategy is for the money, not the startup founders or small business owners. The company brings in money and the investors get money out. So startups looking for angel investors or venture capital (VC) absolutely need an exit strategy because investors require it. The exit is what gives them a return. And the rest of us, starting, running, and growing a business, but not looking for outside investors, will probably need an exit eventually; but there’s probably no rush.

The exit strategy related to startup funding, is what happens when investors who had previously put money in a startup get money back, usually years later, for a lot more money than they initially spent.

Investor exits normally happen in only two ways: Either the startup gets acquired by a bigger company, for enough money to give the investors a return , or the startup grows and prospers enough to eventually register for selling shares of stock to the buying public over a public stock market, as happened with Facebook in 2012 and Twitter in 2013.

The traditional exit strategy

When investors sit for pitches from startups, they expect the startups to cover the exit strategy. That usually means talking, in the pitch and in the business plan, about how similar companies in similar markets have been able to exit via selling out to a larger company. The more sophisticated plans and pitches will mention recent exits and offer information about how the companies that exited were valued when they were bought. That usually ends up as something like “[this similar company] was purchased by [that company] in [that year] for [that amount], which was [that multiple] of its revenues.” The standard phrase in that context is “5X” for an exit value of five times revenues, or “10X,” or whatever. And that should not be confused with similar phrasing describing the investors’ exit: an exit at “5X,” for example, would be one in which the investors received an actual exit amount, in money or shares they can sell, of five times what they originally invested.

You can understand how investors feel about exit strategy if you consider what happens to investors who don’t get exits. They don’t have a return. They put money into a company, but they get nothing back. Having a minority share in a healthy, growing company, without any prospect of an exit, is a terrible scenario for investors. My own angel investment activities include more than one investment in companies that are still healthy, still growing, still have happy founders, but no good prospects for exits in the foreseeable future. And that scenario, while it can be very good for the founders, is terrible for the investors.

A different type of exit strategy

Aside from the investor-oriented exit strategy, which is a factor in every outside investment, you’ll occasionally hear about a different kind of exit, when the startup founders, the entrepreneurs themselves, sell their company and turn their ownership in a business into money. This happens most often as people get older and want to finish their careers. More rarely, you’ll encounter younger entrepreneurs whose vision from the start was to establish a business, grow it fast to make it attractive to a purchaser, and sell. These are also exits.

Do you know how to write and pitch an effective exit strategy? Do you have any questions? Share with us in the comments below.

Dating an entrepreneur is a task not everybody can handle. You have to put up with their weird habits and lack of routine. But if you are someone who likes things different then you will find a relationship with and entrepreneur exciting. Here are 10 reasons that will make you want to date an entrepreneur.

1. Every day is different

No two days will be the same for you. Every new situation your partner deals with will bring out something in them that you didn’t know about earlier. You will learn about his most weird habits very early and that is a great thing.

2. Life will be full of surprises

While they may forget some important events, they will more likely come up with very creative ways to make up for it. Instead of a normal, boring, expected birthday you will get a surprise when you least expect it.

3. They’ll make you start your own business

Entrepreneurs are always looking at opportunities to make money. So don’t be surprised if they notice a hobby of yours and persuade you to start selling it. The opportunity is so enticing that you will end up with your own business in some time. You may be painting or sketching or knitting in your pass time, they’ll make sure that it doesn’t just remain a pastime.

4. They are very passionate

It’s in the nature of an entrepreneur to be very passionate about everything they value. If you are in a relationship with them they will be passionate about it too. Sure, they may not give you too much time, but they time they do spend with you will be meaningful

5. Meeting new people is fun

If you like meeting people, this is something you are going to enjoy. While they are building their network you can socialize. You will have a lot of chances to meet other entrepreneurs, who will have adventures of their own. These are exciting people, you will never get bored with them.

6. You’ll learn how to dream

Entrepreneurs never let a dream pass by without giving it a try. If you have a dream and you talk about it, they will almost always tell you how you can realize it. For entrepreneurs, no dream is too big. You’ll learn that too if you stick with one.

7. They are spontaneous

They come up with random ideas all the time; and if they think it’s a good one they will execute them. This makes every moment you spend with them very exciting. You never know what they will do next. You can never prepare yourself for the next adventure that they plan for you.

8. You’ll learn to get creative

Every good trait eventually brushes off of people. Same is true for entrepreneurs. As you see them solve problems with creative ways you will learn how to do it to. The endless supply of creative ideas from them is a great input for your own problems. With more knowledge you will eventually start solving your own problems creatively.

9. You will become independent

As you are dating an entrepreneur you will realize that they cannot be there for you every time you need them. Coping with that fact you will learn how to do things yourself. Being independent feels great and your partner will appreciate this personality trait too.

10. They need you

The life of an entrepreneur is very individualistic. Most of the time they are tackling their problems all alone and it feels lonely. So they need someone to share their feelings with. They need someone to be comfortable with, with whom they can be open and personal. They’re human too, after all. This makes you a very important part of their lives and they will show that to you.

There is a difference between having a job and having a business. In either case, you are going to be working hard to accomplish your tasks. The key difference is that, when running your own business, you control the product that you work on, and thus the work that you are doing.

For a lot of us, the idea of starting a small business is frightening because of the risks. The job you have now might not be the best, but at least it likely feels secure. The thing is, working on your dream should be far more rewarding, right? When working hard on a task, imagine being able to work hard on something that you dream about.

Imagine your work paying off by making your dream a reality, and attaching your name to the final product. This is the advantage of working for yourself. Controlling your product means controlling your destiny. In splitting off and working for yourself, you can continue to do the work you love—and also have control over every aspect of it.

Taking a risk—will it be worth it?

Released in 2001, “Halo: Combat Evolved” revolutionized gaming

A good example of a company that took this risk is Bungie, the video game studio responsible for the revolutionary “Halo” franchise. For most of the 2000’s, Bungie was the brightest star in Microsoft’s lineup. Their “Halo” franchise is one of the best selling video game series of all time, having already sold more than 50 million copies. The story within the game was later adapted to eight novels, several comic series, a graphic novel, numerous action figures, and an anime series.

The original game, “Halo: Combat Evolved,” is considered to have been a massive influence on modern first-person shooters, and the game is routinely referred to as the beginning of modern gaming. With all the success of the “Halo” series, Microsoft paid Bungie a massive contract to continue producing “Halo” games.

And, for nearly eight years, Bungie did just that.

In total, Bungie made five “Halo” games. Microsoft wanted them to continue to do so forever, but the Bungie producers were tired of being stuck in the box of just making the same product over and over. These were artists, top video game designers, that wanted to be able to make the games they wanted to work on, not just what had been selling well.

So, in 2008, Bungie went independent of Microsoft. Still Microsoft contracted them to make “Halo” games exclusively. And once again, Bungie decided they’d had enough. Despite a big contract offer from Microsoft, Bungie backed out of the “Halo” franchise and Microsoft was forced to create a new studio to continue production.

Bungie was risking a lot. Sure, they were an established name in the video gaming world, but that was because of their “Halo” franchise. Leaving that behind could potentially mean giving up millions of dollars in profits and for what? Just to try a project that would have to start from scratch in a crowded gaming lineup? You bet. The personal freedom to create the things they wanted to make was more important than any amount of money.

It meant that finally, they had an opportunity to make a game they wanted to make, and to publish on a variety of platforms—no longer were they stuck producing exclusively for Xbox. Bungie picked up Activision Blizzard to be their publisher, but, unlike their former deal with Microsoft, Bungie would own the rights to all of their franchises—Microsoft having retained the rights to “Halo.”

What happens when you decide to create something new?

So, how would Bungie, out on its own, follow up on such a successful production history for a bigger boss? The answer is “Destiny,” an open-world first-person shooter that Bungie will be releasing in September. Having already once made changes to the gaming style with the release of “Halo: Combat Evolved,” Bungie decided to push the boundaries of the shooter game again. The game has been described as a “shared-world shooter,” combining the elements of the first-person shooter with that of massively multiplayer online games (MMOs).

The game is once again Bungie trying something that is the first of its kind, making it a big risk from a company already risking plenty.

“Destiny” might be a risk, but so far it looks to be one that will pay off massively for Bungie. And how much of this has to do with their control of their product and their drive to create something they wanted to see?

The game, in its promotional demos at E3, looks absolutely gorgeous. The graphics were opened up not just on the next generation Xbox, but also on the Playstation—Bungie’s first work on the graphics-heavy console—and they look great.

Bungie left “Halo” for the chance to create new worlds.

More importantly, however, is the content that fills the impeccably-designed world of Bungie’s futuristic Earth, and Bungie is also receiving rave reviews there. The game is open beta, available to pre-order customers on the Playstation, and has achieved a whole new level of hype, with one Yahoo reviewer calling it “the best game I’ve ever played.” Consumers who accessed the beta agree, at least to a certain extent, and the game has since gone on to receive, according to video gaming site GameZone, the highest number of preorders ever for a first-game franchise title, despite a general decline in game sales in recent years.

While leaving behind a secure job for an unknown future is a risk, you do not advance without taking those risks, regardless of the field or industry you are in.

Assistant coaches become head coaches who become fired head coaches. Music video directors step into the Hollywood spotlight and direct blockbuster bombs. Video game designers decide they want to do more than create worlds for other people, and their games don’t sell.

But, all of those failures don’t mean there aren’t success stories. Bungie’s employees stepped away not just from secure jobs, but jobs that involved making one of the top-selling video game series of all time. They could have been asking, ‘how do we compete with our own legacy?’. Instead, they took a risk and it appears it’s going to pay off.

Have faith in yourself and pursue your ideas relentlessly.

Taking control of your destiny

That’s the part that is important. It’s a cliche, but “choose a job you love, and you’ll never work a day in your life.” I can’t tell you that working for yourself is better than working for others—perhaps you would rather have a secure job, doing something you know will succeed – but what I can tell you is that if you have a desire to create the things you imagine, your desire to do this will never die and you will never truly be happy working for someone else.

I want to shape everything—were I a game designer, I would not want to only color the world, I would want to create it. I would want to tell its history, and the history of the characters within it. I would want to decide what sort of world it was, and what sort of adventure it held within its atmosphere. Not have it dictated to me.

I am just as excited as anybody else when my paycheck comes, perhaps more than most as a cash-strapped college kid, but I believe it’s far more important to follow your passion than follow the paychecks.

If you are like me, or like the proud people at Bungie, you want the control to shape your product, and the pride that comes with knowing you are fully responsible for the success it brings. We gamers have been talking about “Halo” for over a decade now. Perhaps, a decade from this article, we will be talking about “Destiny” in the same way.

You could do the same thing for your field. You are capable, and you have ideas—and the world needs new ideas. You don’t have to start a small business to have passion for your job, but imagine the passion of creating something all your own. For Bungie, their own company led to “Destiny.” Imagine what your destiny could be if you ran the show.

As a small business owner, your bank has a big impact on your finances. You’ll want to choose a bank that offers competitive rates, minimal fees, and great products.

Switching to a new bank can take time and effort, but it may be worth it if you can save money or receive a better product.

Here are five ways to tell if it’s time to switch banks.

1. The minimum balance requirement on your checking account is too high

Larger banks typically charge fees on business checking accounts if you don’t maintain a minimum balance. The minimum balance requirement averages around $5,000.

Not all small business owners are able to retain this kind of balance, particularly new businesses. A startup may use incoming cash right away on essentials like inventory and then get hit with a fee for not having a high enough balance.

The fees typically range from $12-20 per month, which may not seem like a lot, but it adds up—and why pay if you don’t have to? Many online banks, smaller community banks, and credit unions don’t require minimum balances.

2. The monthly transactions limit and cash transaction fees are too limiting

Larger banks typically place a limit on the number and volume of physical cash deposits and withdrawals you can do each month, after which a fee is applied. For example, you may be limited to $10,000 in cash transactions each month and 200-250 cash transactions each month. After that, you may have to pay a 0.2-0.3 percent fee per transaction ($2-3 for every $100).

Most businesses won’t find these limits to be a problem, but if you’re a retail business with a lot of incoming and outgoing cash, these limits can be constraining. In that case, you might want to shop around for a bank that offers the most flexibility. Also, you can try a community bank or credit union, which may offer more generous transaction allowances.

3. Your business checking account doesn’t integrate with your accounting software

Most banks offer businesses the ability to link their accounting software with their checking account. This saves time and reduces errors. QuickBooks is the most popular accounting software for small businesses, so most banks offer it as an integration. The integration eliminates the need to manually input your banking activity into your accounting software. In some cases, you can even automatically pay bills through QuickBooks using your checking account.

More recently, alternatives have started to gain popularity. Some of these have more features available to users and can be found for a better price. Be sure to ask your banks if they offer integrations with any other accounting software platforms.

Without this feature, you may be wasting time and be more prone to making accounting errors. So consider switching banks if their systems don’t integrate with the tools you use.

4. Your bank doesn’t offer online or mobile banking

Many small business owners work on the go and need online or mobile banking. Having access to real-time information can help you when working with clients.

Some useful banking products, such as auto pay and mobile deposits, are only available online or with a mobile app. If your bank doesn’t offer online or mobile banking, you may want to switch to a more tech-savvy bank.

5. You want a business loan, and the bank doesn’t meet your needs

If checking and savings are the main banking services you use, then focus on things like fees and features. If you need a business loan, then there are additional considerations; larger banks won’t give you special treatment when applying for a loan simply because you already have a checking or savings account with them. Local banks and credit unions place more value on building existing relationships.

Applying for a business loan is a big endeavor that requires expert guidance from a knowledgeable banking partner. If your bank is falling short, consider switching.

The bottom line

Even if you’ve been going to the same bank for years, the five reasons above may be signs that it’s time to switch.

While things like fees and rates are important, you should also consider more intangible things, such as the level of service and attentiveness from bank staff. If you’re unsatisfied with your bank, consider taking your business elsewhere.

Have you been kicking around a business startup idea for a while now? You’re not alone. A lot of entrepreneurs sit on their ideas for months or years before taking action. Some people can’t find the time to start a business because they work 40 hours a week and have a family. Some are scared to take the plunge, while others don’t know how to set their business idea in motion.

1. Create a business plan

One of the best ways to make your business a reality is to put pen to paper, or in this day and age, fingers to laptop. A business plan will help you define what your business is, how you’ll attract customers, what your goals are, plans to reach those goals, and outline the structure of your business.

Writing and preparing this document forces you to organize and flesh out your business idea.

2. Know your market

You have to know if there is a demand for the product or service you plan to offer. You have to know the industry inside and out. Scope out your competition and determine what makes your business different. Look into viable prices. Will people pay the price you want?

3. Create a test product

Whether you’re selling widgets or offering virtual assistant services, you should give your business a test run, Long suggests. Have the product made and let some friends try it out. Ask for feedback and tweak the product if needed. If you offer a service, consider working with a local charity for a few weeks to give your business a test drive.

4. Estimate startup funds

Every startup requires initial funds and you’ll want some solid estimates before you move forward. Gauging startup cash can be tricky.

Once you’ve figure out how much you’ll need to open your doors, you need to figure out where that money is going to come from. Do you want a bank loan? Do you have enough saved to support the business yourself? Will you find investors or ask your friends and family to pitch in? Figure out which option suits your business.

5. Mentally prepare yourself

Starting a business isn’t easy. You’ll put in some long nights and wonder if you’re doing the right thing on a regular basis, but Long says persistence will pay off. In other words, be prepared. Do all of the homework listed above and be ready to deal with setbacks. Every entrepreneur faces rejection or unforeseen problems, so be ready to tackle issues head on.

Once you’ve completed everything on this to do list, evaluate your findings and decide if you’re ready to turn your idea into a reality.

Ghana is one of the countries with the fastest growing economy in Africa. Now you may want to know the potentials and fundamentals of doing business in Ghana. With a strong mineral resources sector, cocoa industry, consistent government policy, recent oil discoveries, friendly business environment and a free trade zone for foreign companies; Ghana is definitely a country to beat in the future.

But despite the rapid growth and reformation that the country is enjoying, the country is still falling short in many aspects. And this has opened the door of opportunities to entrepreneurs who are smart enough to identify these loopholes and deal with them. If you are an entrepreneur planning to start a business in Ghana, below are the 10 lucrative business opportunities you should explore:

Top 10 Small Business Investment Opportunities in Ghana

1. Waste management

Although there are a number of waste management companies in Ghana as of present, the country is still battling with more burden of filth than these companies can handle. To worsen matters, many Ghanaians are still in the habit of throwing refuse into drainages. You can make cool money in Ghana if you start a waste management business that offers to help people handle their wastes and refuse.

2. Herbal medicine

Ghanaians are now realizing the fact that not only orthodox medicine is effective in combating various ailments. There is increasing demand for herbal medications, and this has made herbal medicine more popular in Ghana. The good news is that almost all the medicinal plants that are used to handle various ailments can be found in Ghana.

So, Ghana is a fertile ground for flagging off a business that sells herbal medicine. If you go into this business, you will most likely get quick returns because herbal medicine is cheaper than orthodox medicine.

3. Agriculture and farming

Food is one of the basic needs of man and anyone that ventures into food production is sure of a never ending demand. The steady growth of Ghana’s population due to influx of investors, students, tourist, etc will only help explode the demand for food.

Ghana has soils that can support a vast variety of food crops. And yet, the agricultural sector is one of the most underutilized in the country. The Ghanaian government hasn’t done enough to explore the sector, which comprises only a few private companies. One can liken the agricultural industry in Ghana to a gold mine, as there’s always a high demand for agricultural produce.

4. Oil and gas

Following the discovery of oil in Ghana, the country is set to join the list of petroleum exporting countries. This oil sector, still very young in Ghana, is presently begging to be explored extensively. And there’s almost no limit to the profit that players in this sector can make. Though starting an oil and gas business could be very expensive, you can venture into it if you have what it takes.

5. ICT

Internet access in Ghana is still very scarce and the few internet facilities available are far below average. Ghanaians are presently craving high quality internet services in their homes and offices. And they have no problems paying for such — provided the quality is kept consistent. So, the ICT sector in Ghana is still underexplored, and you can make huge profits by launching a business that provides quality internet services.

6. Food production

Because Ghana is home to many agricultural food products, it offers the much-needed raw materials for food processing companies. And due to the fact that food is always in high demand, starting a food processing business in Ghana is a smart and lucrative move. Better yet, you can start on a smaller scale by launching a small business or restaurant that sells foods and snacks. This business is one of the easiest to start, and it’s very profitable, too.

7. Transport services

Aside food, transport from one place to another is another necessity. And the reality in Ghana agrees with this. So, if you are planning to start a business in Ghana, but you are yet to find a promising opportunity, the transport sector is an option. You can start a business that renders transport services, either on a small scale with few vehicles that ply short routes or on a large scale with many large vehicles that ply long routes.

8. Real estate

Though an expensive sector to break into, the real estate business in Ghana is, as is the case in most countries, very lucrative. Following the discovery of oil in the Western part of Ghana, the nucleus of development and industrialization is gradually shifting towards the region. So, you will probably make more money as a real estate investor if you focus on the oil-rich region.

9. Microfinance

There are many business opportunities in Ghana, and more people are getting to realize this with each passing day. This has led many business-minded Ghanaians (and foreigners, too) into various small businesses.

However, many small businesses are yet to launch and many existing ones are yet to expand — both due to lack of funds. Therefore, there is high demand for microfinance services. If you have a background in banking, especially microfinance banking, you’ll make money and at the same time help develop many small businesses.

10. Tourism

This is another big industry in Ghana. Every year, the country plays host to many foreigners who come to behold the various tourist attractions in the country. The tourism industry in Ghana is another sector you can start a business in if you want huge gains in the long term. One glad fact about this business opportunity is that even foreigners can launch it easily.

Most small business owners are highly skilled multitaskers — and proud of it.

However, because they are so accustomed to doing everything (or almost) themselves, many don’t think about enlisting the help of a small business consultant. That means they might be missing out on some important benefits for their business.

Here are just a few ways that engaging a small business consultant can create value for your small business:

1. Save time and money

Are you still doing the taxes for your business? If so, does it make sense for you to spend your valuable time on such a complex task that also may be outside your area of expertise? Nearly half (45 percent) of financial executives polled for a recent Robert Half Management Resources survey don’t seem to think so: They said they look to financial consultants and project professionals to assist with business taxes.

What about other financial issues that small businesses typically grapple with, like controlling costs or increasing efficiency? A small business consultant can help you to develop strategies for making improvements on both fronts. And if your venture is on the fast track for growth, a skilled consultant can provide insight that can enable you to seize new opportunities while avoiding common pitfalls that could derail your success.

2. Tap expertise at the right time

Even if you would prefer to tackle all business matters personally, engaging an outside expert when especially complex or sensitive issues arise can be an extra measure to ensure problems receive proper attention and are thoroughly resolved. It also can be useful to have a third-party’s perspective on matters that require objectivity, or an “extra set of eyes” to verify that no mistakes have been made in a critical process.

You can also look to a small business consultant for help assessing and evaluating your business processes, operations management, supply chain logistics, exposure to risk and more. Additionally, because you may only need to access this specialized expertise for a short period, engaging a consultant can be an efficient way to tap the expert knowledge you need at just the right time and only for as long as it’s required.

3. Navigate changing workloads

Here’s an important question to consider: If you would need to ramp up your small business suddenly and significantly, could you deliver?

If you don’t have ample support to meet an increase in demand for your products or services, you could be at risk of disappointing your customers — and potentially damaging your business’s reputation. However, you also want to avoid hiring more staff until you are certain that workloads will be sustained.

Bringing in a small business consultant is one staffing management approach for navigating the ebb and flow of supply and demand, as well as for meeting other unexpected changes that present both opportunity and risk for your company.

4. Grow for the future

You want your business to succeed and thrive for the long term, of course. But do you know where your future growth will come from? Engaging an interim management consultant for your small business not only can help you determine the answer, but also get you pointed in the right direction.

Highly skilled senior-level professionals who work as consultants can serve in a number of critical roles, from accounting manager to chief financial officer. And, if and when you decide to take such a step, they can even help your business to prepare for an IPO.

There are many ways for you to work with consultants as your small business evolves. Most important, perhaps, is that these resources can give you the valuable time needed to focus on what you do best: being an expert at whatever it is that led you to launch your own business in the first place.

Low Cost Business Ideas

Franchises with lower costs of entry can make it easier for you to plan to be your own boss. Here’s a look at the strategies behind low-cost franchising and some resources on where to find successful opportunities.