Blog Exit Strategy?

In a recent article entitled “Googling For Gold” written by Roben Farzad and Ben Elgin of Business Week I found myself nodding vigorously at their excellent analysis of where the Google phenomenon currently stands. The $120 billion dollar Google Gorilla now rides inexorably on a wave of investor sentiment. Showing some parallels with the first internet bubble, - this has brought a whole host of entities such as venture capitalists and investment bankers together in an effort to come up with businesses and technology that the mighty Google may want to gobble up one day.

In fact, there are rumours of some entrepreneurs writing the closing chapters of their short termist business plans with a Google exit strategy solely in mind. Potentially not a bad idea on the face of it, but one carrying significant, inherent risks that the likes of Jason Calacanis of Weblogs Inc will testify to. He has quite rightly evangelized on “the flip” being a floored focal point of business strategy and that fledgling companies should concentrate on building a strong base of tangible revenue growth instead. A sensible piece of advice, however it would be very surprising if there weren’t even a footnote devoted to exit strategy incorporated within the Weblogs Inc business plan. Whether it had AOL written into it somewhere is another matter.

But this raises some important questions, if on a different level:

1. Do you as a professional blogger have an exit strategy?
2. Where do you want your blog business to be in say 2 years time?
3. Are you positioning your blogs with an eye to a big payday or for long term organic growth?
4. Who might be likely purchasers of your blog business?
5. Have you considered the potential for a stock market flotation at some point?

Whilst organic revenue growth is key, all of the above questions should be explored and catered for in your Business Plan, even if you perceive yourself as a small fish in a very big ocean. Think big and set your targets high, but realistically. From recent personal experience I can confirm that should you decide upon pitching for Venture Capital funding, then the above points will take on a heightened saliency!

One things for certain, there will eventually be consolidation in the blogosphere as there has been in every industry before it. Casting a cursory eye towards that future will do you no harm. Whether there will be an all consuming Google type organization waiting for you is anybody’s guess. However, focus on producing a high quality blog product, with sustainable revenue and you might find a consolidated version of today’s disparate blog networks courting you. Alternatively, you might end up being at the helm of a consolidated network yourself!