When entrepreneurs start their venture then they dont think much about exiting it as there is a lot that they want to achieve and accomplish before retiring as an entrepreneur. Well at the time of retirement it is essential that you have an exit strategy so that you can get the best value for the business. But it is not necessary that you sell only at the time of requirement as in business nothing is stable, there are ups and downs in business so it is better than you are prepared and already have an exit strategy rather panicking at the crucial time. There are a lot of ways that you can exit from the business but make sure that you have made up your mind and have a plan for the exit.
5 exit strategies for your business
Selling business is the best exit strategy as you can get a good price for your business. There are various ways by which you can go on sale.
The most common method is to use the online business exchange portals like BusinessEx through which you can reach out to a number of prospective buyers in one go without much cost.
The other way is to either sell it to a known person who has shown interest in your business or sell it to employees working for you.
There is one more effective way to the business sale which is to sell it to a big company for whom your business could get the benefit. There are high chances of getting a good price for your business.
In this strategy, you can take out profits from time to time and dry out business financials and then shut it down when there is nothing left. The business shuts down once you liquidate all the assets and all the cash out from there. It is good when you are retiring and plan to give yourself a large salary.
IPO is Initial Public Offer in which you need to publicize your business and list it on stock exchange then once the IPO begins your shares will be bought by the interested buyers. But the drawback in this strategy is that buyers may want money to be used for business expansion but you can take it out after some time.
Merger and Acquisition
In merger and acquisitions, you can sell the majority stake in your business to the big company or any interested buyer. By this strategy either you can merge or fully sell your business to anyone who is willing to give you the price you want. The thing is that by merging with other business you will not exit from business fully but in the acquisition, your business will be acquired fully by someone.
Transfer of ownership
You can always transfer your business ownership to your successor as there will be no involvement of the third party and you will have the influence on the business but the responsibility and work will be shifted on the successor. In this strategy, you can easily exit whenever you want and your successor is ready.
There are a lot of strategies to exit from a business but it depends on you because everyone wants to do it in a way which suits them best. Plan a strategy beforehand so that you dont panic when the time comes. If you want to sell your business then the best way to do it is to get register on BusinessEx and you will find a suitable buyer in no time.