As an entrepreneur just entering the world of business it probably sounds counterintuitive to include an exit strategy for your business. Realistically, however, it is just as important to have a plan to retrieve your capital as it is to have a plan to find that capital in the first place. Exit strategies aren’t just for owner’s peace of mind, after all.
Investors and lenders alike are going to be on the lookout for a reasonable, easily executable exit strategy for your small business. If your business plan doesn’t include a viable exit strategy, you’ll come up against questions like;
- How do you intend to get your money back out of the business?
- How much money can you actually recoup?
- Will you turn a profit with your business exit strategy?
- Who will run the business when you are no longer able?
3 of The Most Common Exit Strategies for Small Business Owners
Save yourself this headache and work out an exit strategy before you even apply for funding. The following three strategies are tested, tried, and true klonopin online methods of successfully ‘exiting’ a business-
Sell Your Small Business in the Public Market
This is an increasingly popular choice amongst small business owners. A profitable and established business will be attractive to a wide variety of potential buyers. You can also sell your assets along with the business itself if you do things this way. Which, of course, maximizes your return.
Groom Your Business for Synergistic Resale to Another Company/Business
When small business owners are ready to expand, they frequently search for synergistic opportunities amongst other small businesses that are ready to sell. This creates a smoother path for expansion for the buyer and is profitable for both buyer and seller.
Liquidation Isn’t Just for the Bankrupt
Liquidation gets a bad rap, but it’s actually a very functional exit strategy for many business types. Particularly those that require a lot of assets to run smoothly. All of that machinery, warehouse space, and other gear can bring you back a pretty penny. It’s also very quick and tidy. You simply close up shop and sell it.