Being a business person, of course, must be prepared with various possibilities that occur in the future. You need to implement a business strategy to keep the business running well. Not only to get big profits in business, you also have to know the right time to end it.
For this reason, you need a business exit strategy that is made early on. There is a lot you can do in business matters. Let's dive into some in-depth information to prepare yourself for exiting your business the right way.
Understanding Business Exit Strategy
A business exit strategy is a plan and approach to transfer ownership from a business to another company or investor. Maybe you're one of those company owners who didn't even think about giving your business to anyone else. However, whether you realize it or not, there will come a time when you have to do this strategy.
Planning a business exit strategy, of course, must have been done since the beginning of building a business. It doesn't matter the scale of the business being run, whether large or only SME scale. Having this plan in place from the start can also help you determine the right business goals.
There are two reasons why business people will apply a business exit strategy. First, you want to maximize personal profit because the business you are running already has a very high value. Second, the business you are running is experiencing a loss and you need to save it to reduce the losses that have occurred and will occur in the future.
Technically, declaring bankruptcy is also a strategy to get out of a business. However, most business people will avoid this one way to get out of the business they run. You could say, deciding to go bankrupt is the last alternative to be taken.
Considerations for Running a Business Exit Strategy
The implementation of each strategy will certainly come back to you, business people. However, there are several factors that can be taken into consideration. The following factors need to be considered in implementing a business exit strategy:
1. Business goals
Business objectives should be the first consideration in determining a strategy. This of course can only be answered by yourself. Do you just want to make big profits, expand your business, or just want to save the business?
2. Time
Each strategy must also have a clear timeline for its implementation. Since this is a big decision, you need to prepare ahead of time. Taking sudden steps will only make your strategy not run smoothly.
3. Aspirations for business
Some people may want their business to continue to run well even though they are no longer in it. These business ideals must also be considered by business people. You may also feel that this business becomes bigger when it merges with other businesses.
4. Market conditions
There are times when you also need to consider the current market conditions. It is possible that the value of your business is high so that many parties make offers. There is nothing wrong with taking a business exit strategy if the profits are quite good.
Types of Business Exit Strategy
Let's put aside the strategy of declaring bankruptcy. Here are a series of business exit strategies that you can apply in your business:
1. Initial Public Offering (IPO)
IPOs are a way that many businesses, both startups and large companies, do. This strategy is to sell some of its shares to the public. As a business owner, you can still own some shares or sell all of them.
2. Liquidation
It could be that you and your co-workers no longer extend your business contract and decide to end it. This liquidation step can be chosen. You can sell assets as well as settle debt obligations to debtors before closing the business.
3. Merger
Merger is combining two companies into one. You just need to find a new business that is in line with the business you have. Merger can be done in two companies that are engaged in the same field. It could also be a company that is in the same supply chain.
4. Acquisition
Unlike a merger, an acquisition will make one company change ownership. In an acquisition, you will pass the business as a whole to another party. However, this move has the potential to increase the value of a larger business.
5. Sell it to the closest people
Transferring ownership to the closest person may be a wise move. You can sell the business to relatives or family to manage again. At least you give it to someone you can actually trust. It is also possible that you sell it to employees who have worked together for decades.
6. Inherit to family members
So far, many large companies have been managed for generations. In other words, you can pass it on to your children and grandchildren after retirement. The advantage of this exit strategy is that you are given time to prepare potential successors from now on.
That's information related to a business exit strategy and some steps you can take. If you are currently running a family business, it's a good idea to start planning to pass it on to the next generation. Join the Family Business: Next Generation Program organized by prasmul eli. Get useful knowledge to continue and pass on your family business in this program!
Being a business person, of course, must be prepared with various possibilities that occur in the future. You need to implement a business strategy to keep the business running well. Not only to get big profits in business, you also have to know the right time to end it.
For this reason, you need a business exit strategy that is made early on. There is a lot you can do in business matters. Let's dive into some in-depth information to prepare yourself for exiting your business the right way.
Understanding Business Exit Strategy
A business exit strategy is a plan and approach to transfer ownership from a business to another company or investor. Maybe you're one of those company owners who didn't even think about giving your business to anyone else. However, whether you realize it or not, there will come a time when you have to do this strategy.
Planning a business exit strategy, of course, must have been done since the beginning of building a business. It doesn't matter the scale of the business being run, whether large or only SME scale. Having this plan in place from the start can also help you determine the right business goals.
There are two reasons why business people will apply a business exit strategy. First, you want to maximize personal profit because the business you are running already has a very high value. Second, the business you are running is experiencing a loss and you need to save it to reduce the losses that have occurred and will occur in the future.
Technically, declaring bankruptcy is also a strategy to get out of a business. However, most business people will avoid this one way to get out of the business they run. You could say, deciding to go bankrupt is the last alternative to be taken.
Considerations for Running a Business Exit Strategy
The implementation of each strategy will certainly come back to you, business people. However, there are several factors that can be taken into consideration. The following factors need to be considered in implementing a business exit strategy:
1. Business goals
Business objectives should be the first consideration in determining a strategy. This of course can only be answered by yourself. Do you just want to make big profits, expand your business, or just want to save the business?
2. Time
Each strategy must also have a clear timeline for its implementation. Since this is a big decision, you need to prepare ahead of time. Taking sudden steps will only make your strategy not run smoothly.
3. Aspirations for business
Some people may want their business to continue to run well even though they are no longer in it. These business ideals must also be considered by business people. You may also feel that this business becomes bigger when it merges with other businesses.
4. Market conditions
There are times when you also need to consider the current market conditions. It is possible that the value of your business is high so that many parties make offers. There is nothing wrong with taking a business exit strategy if the profits are quite good.
Types of Business Exit Strategy
Let's put aside the strategy of declaring bankruptcy. Here are a series of business exit strategies that you can apply in your business:
1. Initial Public Offering (IPO)
IPOs are a way that many businesses, both startups and large companies, do. This strategy is to sell some of its shares to the public. As a business owner, you can still own some shares or sell all of them.
2. Liquidation
It could be that you and your co-workers no longer extend your business contract and decide to end it. This liquidation step can be chosen. You can sell assets as well as settle debt obligations to debtors before closing the business.
3. Merger
Merger is combining two companies into one. You just need to find a new business that is in line with the business you have. Merger can be done in two companies that are engaged in the same field. It could also be a company that is in the same supply chain.
4. Acquisition
Unlike a merger, an acquisition will make one company change ownership. In an acquisition, you will pass the business as a whole to another party. However, this move has the potential to increase the value of a larger business.
5. Sell it to the closest people
Transferring ownership to the closest person may be a wise move. You can sell the business to relatives or family to manage again. At least you give it to someone you can actually trust. It is also possible that you sell it to employees who have worked together for decades.
6. Inherit to family members
So far, many large companies have been managed for generations. In other words, you can pass it on to your children and grandchildren after retirement. The advantage of this exit strategy is that you are given time to prepare potential successors from now on.
That's information related to a business exit strategy and some steps you can take. If you are currently running a family business, it's a good idea to start planning to pass it on to the next generation. Join the Family Business: Next Generation Program organized by prasmul eli. Get useful knowledge to continue and pass on your family business in this program!
