Newspaper article THE JOURNAL RECORD

Commentary: Begin a Business with the End in Mind

Newspaper article THE JOURNAL RECORD

Commentary: Begin a Business with the End in Mind

Article excerpt

Food for thought: Before you start a business venture, you need to have contingency plans for getting out of the company.
Many aspiring business owners may consider this to be a very negative train of thought as they prepare to open their doors and welcome in the public but experts say an exit strategy should be a part of any entrepreneur's business plan.
"Truly, to run a business successfully, it's vitally important to know what your exit is at any moment in time because it impacts everything you do," says Peter Engel, author of the book, What's Your Exit Strategy: Seven Ways to Maximize the Value of the Business You've Built.
"It's not a question of getting out. It's thinking about maximizing the value at whatever time you intend to get out," Engel said.
An exit strategy at its most basic level is simply how you will leave your business. This is important for several reasons: raising capital, timing and planning.
For example, to attract investors you will need to demonstrate how they will be able to recoup their investment and exit the venture, usually within three to five years. Some entrepreneurs plan to take their companies public with an initial public offering and use the proceeds for retirement. It is a good idea to periodically review your exit strategy every year as conditions in your business change.
So, how are you going to get out of your business?
Are you going to sell to someone else?
Are you planning on being bought out by a larger firm?
Or are you going to take your firm public and sell stock?
These are all vital questions that need to be asked before you launch a business because the last thing you want is a business that is successful that you can't do anything with.
By including an exit strategy in your original business plan, you may become aware of pitfalls and obstacles before they occur, saving you time and heartache in the long run. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.