When Should I Develop an Exit Strategy for My Business?

Many established, new and potential business owners avoid this question. With good reason: who wants to consider being out of business when you are concentrating on being in business?

Tactics that business owners and potential business owners may use to avoid this subject include leaving an Exit Strategy out of their business planning process altogether, or coming up with as much of a generic Exit Strategy as possible, perhaps to avoid appearing to be negative, or from fear that it will raise red flags and make investors or lenders more leery of investing in their business.

Many lenders and investors, however, may find that business owners who have developed an Exit Strategy as an indication that the business owner or potential business owner has covered all their business bases, and that you are actually demonstrating that you have thoroughly investigated making the business successful. Indeed, your efforts demonstrate that you have done the necessary due diligence to mitigate as many of the risks possible when entering the business, making it a sound investment, and increasing lenders and investors’ odds of getting a positive return on their investment.

For these reasons, it is best to develop an Exit Strategy even before you enter business. In fact, by developing a detailed Exit Strategy before you enter business, you will be able to develop your strategy when you have a clearer head, and not when you are in crisis mode.

ABOUT THIS EXCERPT:

This is an excerpt from a 4-part eBook series on “HOW TO” Write an Effective Business Plan. The series includes information on topics such as some suggested questions that you may ask yourself when developing your Exit Strategy. The benefit from this series is that if Business Plans are researched and written emphasizing the concepts mentioned throughout the 4 part series, chances of receiving financing are increased significantly. The eBook series is available for $2.99 on Amazon:

Part 1: http://www.amazon.com/dp/B01FYUKBUO

Part 2: http://www.amazon.com/dp/B01G6DRLO2

Part 3: http://www.amazon.com/dp/B01HHN7WYE

Part 4: http://www.amazon.com/dp/B01GNMX3LG