Entrepreneurs – Got A Great Business And Want To Capitalize As Quickly As Possible? Here’s Some Exit Strategy Ideas
Entrepreneurs – Got A Great Business And Want To Capitalize As Quickly As Possible? Here’s Some Exit Strategy Ideas
Please remember that venture capitalists are seeking high returns in exchange for their high risk investment. Many of them expect your company to go public within a short time frame.
Angel investors are not so concerned with you going public, but are still looking for a quick and high rate of return on their investment. They are not as sophisticated as venture capitalists or institutional investors and are more likely to wish to be in your business.
Here are a few ideas for you.
If you have no investors and merely wish to exit yourself from your business. Investors do not accept these exit strategies as being very professional.
Sell: The most obvious option if you have a viable business.
Asset Strip: You can pay yourself a huge salary and sell off all viable components of the business. It could be that this is a more profitable option than selling your business as a going concern.
Minimize the Business: If time is your problem then just restrict your trading hours and/or product line. Outsourcing some areas of the business will give you more time.
Liquidation: Cease trading, pay off your debts and sell your assets. Close the doors and walk away with your memories and stories.
Give your Business Away: You can remove yourself from the business and leave your business to your heirs. Take legal and financial advice first though please.
Here are a few more conventional exit strategies that an investor will be interested in hearing about.
Consultancy: You could let your management team take over the running of the business and take on a consultancy or executive role. This can only be done if your management team are capable of running and improving your business. This option is quite often take if you personally have reached the pinnacle of your ability, or want to spend more time away from the business. This option allows for a more experienced management team to run the business whilst you retain an income and influence on the business. An example of this would be Anita Rodderick of Bodyshop – who took the opportunity to follow her love of conservation whilst still retaining some influence over the company that she founded.
Merger or Acquisition: This is a particularly attractive option when you are a small company with a strong presence in a niche market. There are many small company owners that have become very rich by being bought out by the likes of Google or Amazon. These large companies do this as they want the products you have and buying a company is cheaper than the research and marketing necessary to bring these products to market. The merging or acquiring company is paying for your assets, patents, copyrights, good will, market share and client base. In a merger you can arrange for a nice consultancy post for yourself in exchange for giving up your chairmanship. Not quite giving up the business but not a bad lifestyle.
Franchise: If you have a business that can be duplicated in many different regions why not consider setting your business up as a franchise. Similarly of you have a business with numerous outlets why not franchise some of these? Alternatively why not turn your head office location into a franchise headquarters and then sell off franchises? This option does take some time and money but can drastically decrease the time that you have to spend with your business, whilst still providing a good income.
IPO: The holy grail of business and one that you read about when people become “over night millionaires”. About as likely as becoming an overnight millionaire by winning the lottery. Unfortunately rather than handing over your Dollar/Pound/Euro for a ticket – you are going to spend hundreds of thousands on lawyers, analysts, PR and bankers!
Which ever option you choose – choose carefully and good luck with your new found wealth and leisure.
Entrepreneurs Got A Great Business And Want To Capitalize As Quickly As Possible Heres Some Exit Strategy Ideas - To learn more about this author, visit Lee Lister's Website.
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Many business owners either with a new or established business are seeking to capitalize on their hard work and move onto other things. Some entrepreneurs are seeking capital from angel investors and need to provide suitable exit strategies within their business plans.
Please remember that venture capitalists are seeking high returns in exchange for their high risk investment. Many of them expect your company to go public within a short time frame.
Angel investors are not so concerned with you going public, but are still looking for a quick and high rate of return on their investment. They are not as sophisticated as venture capitalists or institutional investors and are more likely to wish to be in your business.
Here are a few ideas for you.
If you have no investors and merely wish to exit yourself from your business. Investors do not accept these exit strategies as being very professional.
Sell: The most obvious option if you have a viable business.
Asset Strip: You can pay yourself a huge salary and sell off all viable components of the business. It could be that this is a more profitable option than selling your business as a going concern.
Minimize the Business: If time is your problem then just restrict your trading hours and/or product line. Outsourcing some areas of the business will give you more time.
Liquidation: Cease trading, pay off your debts and sell your assets. Close the doors and walk away with your memories and stories.
Give your Business Away: You can remove yourself from the business and leave your business to your heirs. Take legal and financial advice first though please.
Here are a few more conventional exit strategies that an investor will be interested in hearing about.
Consultancy: You could let your management team take over the running of the business and take on a consultancy or executive role. This can only be done if your management team are capable of running and improving your business. This option is quite often take if you personally have reached the pinnacle of your ability, or want to spend more time away from the business. This option allows for a more experienced management team to run the business whilst you retain an income and influence on the business. An example of this would be Anita Rodderick of Bodyshop – who took the opportunity to follow her love of conservation whilst still retaining some influence over the company that she founded.
Merger or Acquisition: This is a particularly attractive option when you are a small company with a strong presence in a niche market. There are many small company owners that have become very rich by being bought out by the likes of Google or Amazon. These large companies do this as they want the products you have and buying a company is cheaper than the research and marketing necessary to bring these products to market. The merging or acquiring company is paying for your assets, patents, copyrights, good will, market share and client base. In a merger you can arrange for a nice consultancy post for yourself in exchange for giving up your chairmanship. Not quite giving up the business but not a bad lifestyle.
Franchise: If you have a business that can be duplicated in many different regions why not consider setting your business up as a franchise. Similarly of you have a business with numerous outlets why not franchise some of these? Alternatively why not turn your head office location into a franchise headquarters and then sell off franchises? This option does take some time and money but can drastically decrease the time that you have to spend with your business, whilst still providing a good income.
IPO: The holy grail of business and one that you read about when people become “over night millionaires”. About as likely as becoming an overnight millionaire by winning the lottery. Unfortunately rather than handing over your Dollar/Pound/Euro for a ticket – you are going to spend hundreds of thousands on lawyers, analysts, PR and bankers!
Which ever option you choose – choose carefully and good luck with your new found wealth and leisure.
Entrepreneurs Got A Great Business And Want To Capitalize As Quickly As Possible Heres Some Exit Strategy Ideas - To learn more about this author, visit Lee Lister's Website.
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Joe DagerJoe Dager is President of Business901, a progressive coaching company providing no-nonsense direction in areas such as Lean Six Sigma Marketing and organized referral marketing. What others say: In the past 20 years, Joe and I have collaborated on many difficult issues. Joe’s ability to combine his expertise with “out of the box” thinking is unsurpassed. He has always delivered quickly, cost effectively and with ingenuity. A brilliant mind that is always a pleasure to work with.” - James R. If you want to learn more about Business901, start a conversation with us. We can be found @ Web/Blog: Business901.com Web/Blog: FundingYourNonprofit.com LinkedIn Profile Follow me on Twitter - Visit Joe Dager's Website |
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Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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