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How to Select your Exit Strategy

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 Exit Strategy

In order to grow your business, you need to choose your exit strategy. A badly planned exit strategy leads to limited options in the future. The question is not how much or what you will sell but rather when you plan to do that and how you plan to do it. Selecting an exit strategy depends on a number of things. Let us look at three of those. What do you get if you plan a head?

Exiting a startup is all about the starting time. If you plan your exit strategy earlier, than expected is considered an opportunity towards moving your business ahead. This is a brilliant idea if your business partners agree with it. Not only will your business partners, your investors also count on the vote. What you do not know is that there are business partners, who already want a bigger share of your company and hence be more involved for several years. In a case, like this, you need an exit plan; you need to be able to prove to your employees that you have an exit plan which will not interfere with the sales. Running a business could be faced by a lot of challenges, for instance, let’s say that you do not want your shares to be divided among company shareholders, but rather be inherited by your family members, there are chances that angel investors may not agree to that meaning sharing the entire equity share with employees or heirs is better, if you started your company earlier. Starting earlier means funding early, which will return boost growth to the company. What does selling to mean for your business?

Every business person must come up with a properly designed exit strategy. When you decide to liquidate your own business, no one should go against that. Liquidation in this case means selling out every piece of equipment and share within the company to another willing investor or entrepreneur. Some consultants have claimed that starting a company and selling it out after a few years is somewhat like betrayal to employees, who helped build it while others have their own opinions on the same take. Selling out your own company that you have worked tirelessly to build, if it is not making any profits is an extraordinarily difficult decision to make, mostly it is not considered as an exit plan, but portfolio diversification of investments is necessary since they define assets, and what they would become if merged to larger business. Consider the disadvantages if you decide to take this exit strategy. What about time to sell, when do you know the right time?

An exit strategy will always be there in case you plan on closing business deals and going home. All in all, we get one thing; a business is an asset.  If you own it, you have almost 100 percent of net worth. Therefore, selling it out anytime is no significant deal!



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