Forget a Lifetime Commitment. Plan to Quit Your Startup After Five Years

We asked successful entrepreneurs and coaches how long you should expect to run that startup you just founded. The resounding answer: Plan on an exit after five years. You don’t have to leave, but keeping a hypothetical sell-by date in mind is a good idea. “People often pick up their heads and realize they should’ve made a move two years before,” says Andrew Gluck of IrrvrntVC, an early-stage venture capital firm. A half-decade, it turns out, is enough time to build something that lasts, but not so long that you’ll regret not bailing out to chase your next dream. Here are five ways a five-year outlook can help you avoid common entrepreneurial mistakes.

You’ll build a stronger, more valuable company. Most rookie founders instinctively put a great team together around themselves. This decreases the overall value of the business, because outsiders assume the company will only function with you in the driver’s seat. Also, if you’re working long hours, future purchasers are essentially buying a job for themselves, which isn’t always a strong selling point. Instead, create a self-sufficient investment. “Make it run without you,” says Luisa Zhou, who runs courses for new entrepreneurs. “Build your business as if you’re going to exit, with systems in place and as much automation as possible, so you’re not the person who does everything.”