Think of it this way: your business is an asset in which you have invested money. It has a revenue stream that supports your salary and possibly a sizable distribution of yearly profit. It should be increasing in value so that when the time comes, you will be able to harvest additional wealth. Planning an exit strategy is the most commonly overlooked consideration of a business strategy, yet the exit strategy plays a key role in determining the strategic direction for your company. By not proactively planning an exit strategy, business owners, their heirs or their successors may find that future options are limited. Some entrepreneurs think of their exit strategy as the means by which the business transitions to the next major stage.
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10+ Exit Strategy Examples [ Business, Company, Marketing ] | Examples
A business exit strategy is an entrepreneur's strategic plan to sell his or her ownership in a company to investors or another company. An exit strategy gives a business owner a way to reduce or liquidate his stake in a business and, if the business is successful, make a substantial profit. If the business is not successful, an exit strategy or "exit plan" enables the entrepreneur to limit losses. An exit strategy may also be used by an investor such as a venture capitalist in order to plan for a cash-out of an investment. Business exit strategies should not be confused with trading exit strategies used in securities markets.
Entrepreneurs live for the struggle of launching their businesses. But one thing they often forget is that decisions made on day one can have huge implications down the road. You see, it's not enough to build a business worth a fortune; you have to make sure you have an exit strategy, a way to get the money back out. For those of you who like to plan ahead--and for those of you who don't but should--here are the five primary exit strategies available to most entrepreneurs:. One favorite exit strategy of some forward-thinking business owners is simply to bleed the company dry on a daily basis.
It is an undeniable truth that risk is consistent in a company and its ventures. Whatever business it is, there is always a chance that it will not fulfill its goals. This strategy ensures that there is a place for you to bounce back.