BIGtheme.net http://bigtheme.net/ecommerce/opencart OpenCart Templates
Home / Business Valuations / 4 Tips for Creating an Exit Strategy for Your Startup…

4 Tips for Creating an Exit Strategy for Your Startup…

Q: How important is it to have an exit strategy and what should it include?

– William Van Pelt
New Haven, Conn.

A: As a young entrepreneur, you’re likely living in the moment and excited to get your new startup off the ground. But, it’s critical to plan for the future and have a sound exit strategy in place from the beginning.

Whether you envision a company you’ll work at until retirement, or if you hope to build the business up and sell it off for a big payout, your intentions need to be clearly laid out in your business plan.

Here are four tips for creating a sound exit strategy:

1. Plan ahead. Defining what you want in the long term will help shape your business plan. For instance, a family business that’s passed from one generation to the next will require different steps than if you’re counting on selling one day.

Related: How to Determine the Value of a Business  

2. Define potential buyers. If you are planning to sell, it’s important to think about who may be interested in purchasing the value you are creating. Often, it will be a competitor or a larger company in a complimentary industry. Though, it could even be your employees.

3. Research different valuation theories. Understanding concepts like “net present value” and the “multiple of earnings” are absolutely critical for creating wealth. Do your homework. But also never forget that value is subjective so ultimately the business is worth what you sell it for.

Related: How to calculate a startup companies valuation? 

4. Consider selling off parts of your business. Keep in mind that you can certainly sell parts of your corporate structure. You can also divide ownership into two types of shares — voting and non-voting — thereby keeping control of the major decisions.

If you don’t have an exit strategy, then you have created a strategic error by creating a job for yourself that you can’t leave. As an entrepreneur, never forget to work on the business, not in it.

What are your exit-strategy tips? Share your tips in the comments section below.

Have a question for YE’s experts? Submit your questions in the comments section below and those with the most likes from other readers will be answered. On Twitter, use the hashtag #YEask. Include your first and last name, your location (city and state) and the name of your business.


Source link

About admin

Check Also

Square to Price Shares for IPO Today…

Mobile payments company Square Inc is set to price shares for its initial public offering ...

As Ad Business Struggles, Investors Question Snapchat's $16 Billion Valuation…

Snapchat, maker of a free mobile app that lets users send videos and messages that ...

Business-for-Sale Market Ready to Expand…

Based on my own observations from more than two decades in the field of business ...

6 comments

  1. hello there and thank you for your information – I have certainly
    picked up something new from right here. I did however expertise several technical points using this website, as I experienced to reload
    the site many times previous to I could get it to load properly.
    I had been wondering if your hosting is OK? Not that I’m complaining, but
    slow loading instances times will sometimes affect
    your placement in google and can damage your quality score if ads and marketing with Adwords.

    Well I am adding this RSS to my e-mail and can look out for a lot more of
    your respective exciting content. Ensure that you update this again very soon.
    manchester city trøje børn

  2. A lot of thanks for all your work on this website. My mother take interest in setting aside time for research and it’s really easy to see why. A number of us hear all of the lively tactic you create advantageous tips and tricks on this web blog and in addition boost response from some others on that area then our own child has always been becoming educated a whole lot. Have fun with the remaining portion of the year. Your carrying out a wonderful job.

  3. You’ve hit the ball out the park! Iniecdrble!

  4. I’m also writing to make you know of the brilliant experience my cousin’s daughter undergone browsing your blog. She even learned such a lot of things, not to mention what it is like to have a marvelous giving nature to let most people smoothly know precisely some complex subject matter. You really surpassed our desires. I appreciate you for distributing those precious, dependable, revealing and cool thoughts on the topic to Julie.

  5. I and also my buddies were actually reading the best information from your web page and then at once developed a terrible suspicion I never thanked the web site owner for those secrets. Those guys appeared to be as a result excited to learn them and already have in reality been tapping into them. Thanks for truly being really considerate and then for figuring out this kind of awesome subject areas most people are really wanting to discover. Our own honest regret for not expressing gratitude to earlier.

  6. Thank you so much for providing individuals with a very nice chance to read critical reviews from this site. It’s always so awesome and as well , full of amusement for me and my office colleagues to visit your blog not less than thrice a week to learn the newest things you have. Of course, I am just certainly motivated with all the mind-blowing points served by you. Certain 3 facts in this post are ultimately the finest I’ve ever had.

Leave a Reply

Your email address will not be published. Required fields are marked *