CHAPTER

19The Harvest and Beyond

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Harvest Strategy

Guidelines Patience Realistic valuation Outside advise

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Harvest Options

Seven principle avenues “Capital cow” Employee stock ownership plan Management buyout Merger, acquisition, and strategic alliance Outright sale Public offering Wealth-building vehicles

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Number of Recent IPOs

Years 1996 through 2001

Source: Thomas Financial/Venture Economics and National Venture Capital Association, January 7, 2002.

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Recent IPO ($ Millions)

Years 1996 through 2001

Source: Thomas Financial/Venture Economics and National Venture Capital Association, January 7, 2002.

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Renewal and Perpetuation of the Entrepreneurial System

Highly successful entrepreneurs foster new growth by giving money to the following: College endowments Community activities Investment in new companies

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Success in the Entrepreneurial Process

Two habits necessary A passion for achieving goals A relentless competitive spirit and

desire to win

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Secrets to Success

Seven points for your contemplation and amusement There are no secrets; understanding and

practicing the, along with hard work, will get results

As soon as there is a secret, everyone else knows about it, too; searching for secrets is a mindless exercise

Happiness is a positive cash flow

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Secrets to Success

Seven points for your contemplation and amusement If you teach a person to work for others, you

feed him or her for a year, but if you teach a person to be an entrepreneur, you feed him or her, and others, for a lifetime

Do not run out of cash

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Secrets to Success

Seven points for your contemplation and amusement Entrepreneurship is fundamentally a human

process, rather than a financial or technological process; you can make an enormous difference

Happiness is positive cash flow