Even if your goal is to build your EdTech company organically, don’t discount the value of being acquired down the road.
As I wrote before, to maximize success, EdTech entrepreneurs and CEOs should think about how to build their company to be a desirable acquisition target right from the beginning. This is a strategy that forces you to look at your company, products and services in a realistic way, including how you fit into the highly competitive education market.
Make Your Company a Valuable Target
Many leaders have a hard time thinking this way because they feel like it is almost disloyal, especially if this is the first company they have ever founded. They feel like it will seep through the company and will make things feel unsteady.
On the contrary, by thinking in a way that makes your company a valuable target, you’re actually saying to your team that you are trying to position your company to grow, to pivot when necessary, and to move within an ever-changing market successfully. The best thing you can do for your strategy and operations is a constant and consistent breaking down of what you are doing and how the market is trending to make sure you are on the right path.
Even if you plan to grow from five employees to 500 and retire to pursue your dreams, you should always be doing self-examination and due diligence as if you’re going to put your company up for sale tomorrow.
Ask Yourself The Right Questions
This objective introspection is a great way to find answers to questions like, “Should we be innovating down our current path? Is this something the market needs? Should we be adding these new features, or is the market not ready for them?”
If you ask these kinds of questions about your company from an investor’s point of view, you’ll be able to recognize if a new feature or function is going to open you up for more scrutiny and competition from larger, better funded, better organized companies.
You never know when an acquisition will be the best move, and if you’ve been a leader who has ignored this thought process, you’re probably not well positioned to know your company’s full value in the market, or your true value in your own company.