Writing a Business Plan

Planning Your Exit Strategy

The final portion of your business plan outlines your exit strategy. It may seem odd to develop a strategy this soon to leave your business, but potential investors will want to know your long-term plans. Your exit plans need to be clear in your own mind because they will dictate how you operate the company.

For example, if you plan to get listed on the stock market, you’ll want to follow certain accounting regulations from day one. If you plan to pass the business to your children, you’ll need to start training them at a certain point.

Here’s a look at some of the available strategies for entrepreneurs:

Exit Strategies for Long-Term Involvement

• Let it run dry: This can work especially well in small businesses like sole proprietorships.

• 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.

• Liquidate: Sell everything at market value and use the revenue to pay off any remaining debt.

• Go public: The dot-com boom and bust reminded everyone of the potential hazards of the stock market. While you may be sitting on the next Google, IPOs take much time to prepare and can cost anywhere from several hundred thousand to several million dollars, depending on the exchange and the size of the offering.

• Merge: Sometimes, two businesses can create more value as one company.

• Be acquired: Other companies might want to acquire your business and keep its value for themselves.

• Sell: Selling outright can also allow for an easy exit. If you wish, you can take the money from the sale and sever yourself from the company.

Read the full article at:http://entrepreneurs.about.com/od/businessplan/a/exitstrategy.htm?utm_term=business%20strategies&utm_content=p1-main-4-title&utm_medium=sem&utm_source=msn&utm_campaign=adid-436b3b11-8a7c-48b5-a2bb-f9041354d812-0-ab_msb_ocode-4516&ad=semD&an=msn_s&am=broad&q=business%20strategies&dqi=&o=4516&l=sem&qsrc=999&askid=436b3b11-8a7c-48b5-a2bb-f9041354d812-0-ab_msb

Patty Block, President and Founder of The Block Group, established her company to advocate for women-owned businesses, helping them position their companies for strategic growth. Charting the course for impactful, sustainable, profitable businesses, the beacon is control: of your strategic direction, your money, your time, your staffing, and your ability to bring in business. The Block Group brings together the people, resources and ideas that build results.

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