Exit strategy business plan

Sketching out how you plan to leave your business, harvest its value, and ensure its ongoing vitality under new ownership is an important first step in guiding the final chapter of your involvement to a positive conclusion.

By Steven D. This could include expansion into new verticals and new markets. In most cases, your written business plan should mention your personal exit strategy. My final example is Irish Pride which was bought earlier this year.

exit strategy for failing business

Start off with setting compatible personal and business goals While these two are inherently different goals, they should be integrated. But a lot of hard work is involved in making those numbers!

Any existing employees may lose their jobs.

Business succession and exit strategies

Sell Your Shares: This works particularly well in partnerships such as law and medical practices. When you are ready to retire, you can sell your equity to the existing partners, or to a new employee who is eligible for partnership. Short-Term Involvement Go Public: The dot-com boom and bust reminded everyone of the potential hazards of the stock market. Many business owners work with consultants or professionals to help them make the best decisions, such as a business accountant or lawyer. Disadvantages Employees may not be suitably qualified to take over the business. Learn more about our editorial process and how we make money here. My final example is Irish Pride which was bought earlier this year.

Discuss not only who they are and their current financial positions e. Assuming your startup takes off, you will probably find that the fun is gone by the time you reach 50 employees, or a few million in revenue. However, the costs can often be covered by intermediate funding rounds.

Initial public offering IPO : You can also sell your business to the public. VC One may decide to increase its investment as part of Round 2 to increase the funds available and to retain its full stake.

how to prepare an exit strategy

Whatever your goals may be, this question will greatly play into your exit strategy outcome. 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.

types of exit strategy
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How to Outline an Exit Strategy in Your Business Plan