Make It Business Magazine Columnist | Victor Chew Wong: Exit strategies, lotteries and the opium of hope

Victor Chew Wong, Publisher and Editor

Victor Chew Wong - Publisher and Editor
Before launching Make It Business magazine in 2003 with business partner Josh Chicher, Victor worked as a journalist at several Canadian newspapers including, The Vancouver Sun, The Province and stints and The Toronto Star and The Globe and Mail. In addition to his responsibilities at Make It Business, Victor is the chair of the Vancouver Board of Trade's Small Business Council and is a director with the Vancouver Board of Trade. He is a past director of The BC Association of Magazine Publishers and the Downtown Vancouver Association.

  victor@makeitbusiness.com

Exit strategies, lotteries and the opium of hope

 I believe it was Adam Smith who once said that lotteries are a tax upon ignorance. If that is the case, then I must plead ignorance. Not today, mind you, but a few years back before jumping into the entrepreneurial abyss.

Back when I was a working stiff, I would buy the occasional 6/49, slip it into my wallet and let it marinate, believing somehow that if it stewed for a couple of weeks I would open the lid and find a jackpot of $10 million, $15 Million, $20 MILLION!!!!!!!!

I’m sad to report that I never won.

Not that I ever had any expectation that I would. I was then, as now, aware of the probability: a better chance of getting hit three times by lightning. I don’t golf. And I don’t buy lottery tickets any more either.

But when I did it was usually on a day I was feeling a little blah. And this little piece of paper, ignorant though it was, would grant me a passport into a fantasyland that would somehow lift the veil of gray. A new car. A house near the beach. Money and gifts for all my friends. Momentarily.

Like opium, it had the seductive power to take the edge off a bad day. Innocent enough, unless you’re taking too many trips to the local dealer stuffing your pockets with Scratch-And-Wins.

For most entrepreneurs, lotteries are just plain dumb. But we worship an equally powerful opiate called The Exit Strategy. It’s where we start a business, grow it to $100 million, then cash out. And it has similar trappings to the Lottery Ticket: the daydreams, the toys, the hope.

Where The Exit Strategy differs, I suppose, is in the probability (better), and the fact that we have some measure of control over the outcome (also better). We in media create the dream by lauding Vancouver folk like Chip Wilson of Lululemon, Sandra Wilson of Robeez, Jack Gin of Extreme CCTV and of Flickr founders Caterina Fake and Stewart Butterfield as examples of those who have successfully taken a lot of cash off the table.

But as Jack Gin notes in this issue of the magazine, the goal of starting Extreme CCTV was never to make a big pile of moolah – it was to build a successful company. And by any measure, he has done that.

At the beginning of a business The Exit Strategy may figure more prominently, but I’m sure most entrepreneurs will agree that once you’re into the journey, the reward is the road itself.

The Exit Strategy is always a presence in any well-run business as it helps define the goals and objectives. But at a psychic level, the real reward is not the bucks, but the learning and growth one accumulates while facing the day-to-day challenge of keeping an enterprise moving forward.

If for whatever reason the magazine you hold in your hands should fail before we reach the holy grail of our exit strategy, I’ll have few regrets. By running this company, I have met wonderful people, learned how to sell, market, think strategically, manage, face my fears.

And that, I suppose, is the difference between blind hope and the hope you make for yourself. Enjoy the issue.

 


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Read other articles by Victor Chew Wong:

The numbers don’t lie: franchising is a great option
- March 2010, Inspecting the Franchise Option

Making peace with the shift from excess to thrift
- March 2010, The Power of Thrift

Putting your head in the Cloud a good strategy
- March 2010, How Cloud Computing Changes Your Business

Leadership is tough, but someone must do it
- March 2010, THE LEADERSHIP ISSUE

Even Luddites should dip toes
- March 2009, Social Media

Book Clubbing a new way to build your business
- March 2009, Capitalizing on E-Commerce

Mom-run biz a challenge, but well worth it
- March 2009, Mompreneurs

Lessons for the old and jealous from next generation
- March 2009, Focus on Young Entrepreneurs

Take a leap to see if faith will be rewarded
- March 2008, Creating PR Buzz

Family businesses incubate trust, hope and dreams
- March 2008, The Family Business

A transcontinental love story, thanks to the internet
- March 2008, Web Wonders

This branding not for faint of heart
- March 2008, Branding Your Business

Opportunities abound in Olympic leviathan
- March 2007, Mining 2010 Olympics for Business



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Small Business Tip

Don’t Cut Your Marketing Budget in a Recession

Perhaps the most widely ignored recession survival "rule," is to not cut back on marketing efforts. A McGraw Hill study done during the early 1980s recession divided firms into those that continued to spend on advertising versus those that cut back. Researchers found companies that continued to spend doubled their sales and profits. Those that cut back lost about 20 percent of sales and profits. The most dramatic gains came in the first two years of the recovery when businesses that had continued to spend enjoyed sales and profit growth of 273 percent. Those non-spenders, they had 20 percent growth in sales and profit after five years compared to 1980.

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