The last thing most people would think about when starting a business would be their exit strategy, after all youâ€™re just getting started! Planning your strategy is actually a MUST. Itâ€™s a must because you never know how things will turn out and having no exit strategy for every possible scenario could lead to wasted opportunity or worse, something disastrous.
You need an exit strategy for any eventually including success. If you think about it a successful business means that it could possibly outlast your ability to manage it, but only if you have an exit strategy in place so that the whole business wonâ€™t come toppling down when youâ€™re gone. So whatâ€™s your business strategy for success? Will you be leaving it in the hands of family, a trusted right hand, or go public with it? Before you decide on a strategy to go with make sure you consider the feasibility of each choice factoring things such as cost, training needs, and timetable.
Be sure that the timetable is realistic. Remember that in business timing is one of the most crucial things. If you already have existing partners/investors you should discuss the exit strategy with them because THEY might have their own exit strategies and their timing might not coincide with your plans.
You also need an exit strategy for failure; a thing people would rather not think about but is vital if you want to bounce back faster. In this case have a baseline criterion to help you determine if itâ€™s time to bail out before you lose too much. Figure out what to do with the remaining stock, with your employees, with your lease contract, and all the other practical details.
This way, however things end, youâ€™ll be prepared.