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Business Exit Strategy: Got One?
Vivian Shimoyama, President of Breakthru Solutions, LLC says, “I
often ask business owners to begin with the end in mind. You want
to create options and opportunities to get what you want from and
for your business.”
"Many entrepreneurs don't think about retirement, and they get
stuck working in the business much longer than they want. That's why
I believe every entrepreneur has to start a business with an exit
in mind. Entrepreneurs should elevate their thinking from traditional
succession plans to a more comprehensive exit strategy," said
Raman Chadha, Executive Director of the Coleman Entrepreneurship Center
at DePaul University in Chicago, Illinois
 According
to an article in Entrepreneur magazine, the definition of ‘EXIT
STRATEGY’ is the planned exit of an owner from their business.
Just as you needed a plan to get into business, you’ll need
a plan to get out of it. Selling or otherwise disposing of a business
requires some forethought, strategizing and careful implementation.
In some ways, it’s a little more complicated than starting a
business. Deciding to sell the business you’ve worked so hard
to grow is rarely an easy decision. However, it may be the right one
under some common circumstances. Selling may be preferable to owning
if:
- You’re ready to retire and have no heir to continue the company.
- Partners who own the business decide to dissolve their partnership.
- One of the owners dies or becomes disabled.
- You or another owner get divorced and need cash for a settlement.
- You want to do something more challenging, more fun or less stressful.
- You don’t have enough working capital to keep going.
- The company needs new skills, a new approach or resources you can’t provide.
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