Discerning the Strategies for Exiting Your Business Business owners work hard to build up their businesses in a bid to attain success. They experience incredible excitement and enthusiasm to get a business going right from the start. However, business owners need to think about what would happen if they were no longer able to be part of the business. Numerous circumstances may occur which drive a business owner to exit their business. Exiting a business is not always negative. For this reason, the exit strategy should be in place as part of the long-term plan for the business. This will ensure that any future exit is well planned for, with a smooth transition or continuity where necessary. Also, a business exit may be an excellent option for a business owner seeking to make a significant return on their investment. Certain circumstances precede the need to exit a business. These include the following: A non – profitable business could require the business to be closed down entirely, or the business owner could consider exiting and allowing the next generation with fresh ideas to run the business and lead it to success. Changes in market conditions – The economic climate makes it challenging for the business owner to run and manage their business. Reduce business ownership – A business owner may be willing to reduce their ownership and also give up some control in the business to a family member or employee, if they can get financial value by doing so. Opportunity to sell – There are times when things fall into place and open up the opportunity for the business owner to sell their business, even if it was not their initial plan. Other circumstances could precede an exit, with those mentioned above being the most recurrent. The exit strategy is a plan more than a statement as several factors need consideration. They include clarity on the benefits of having the exit strategy in place, aligning the exit strategy with business goals and objectives, and determining the impact an exit will have on investors and successors. With a business exit strategy in place, it becomes clear what direction the business should take if or when a transition is necessary. Question -1: Do you think having an exit strategy is an important part of business operations ?

Discerning the Strategies for Exiting Your Business Business owners work hard to build up their businesses in a bid to attain success. They experience incredible excitement and enthusiasm to get a business going right from the start. However, business owners need to think about what would happen if they were no longer able to be part of the business. Numerous circumstances may occur which drive a business owner to exit their business. Exiting a business is not always negative. For this reason, the exit strategy should be in place as part of the long-term plan for the business. This will ensure that any future exit is well planned for, with a smooth transition or continuity where necessary. Also, a business exit may be an excellent option for a business owner seeking to make a significant return on their investment. Certain circumstances precede the need to exit a business. These include the following: A non – profitable business could require the business to be closed down entirely, or the business owner could consider exiting and allowing the next generation with fresh ideas to run the business and lead it to success. Changes in market conditions – The economic climate makes it challenging for the business owner to run and manage their business. Reduce business ownership – A business owner may be willing to reduce their ownership and also give up some control in the business to a family member or employee, if they can get financial value by doing so. Opportunity to sell – There are times when things fall into place and open up the opportunity for the business owner to sell their business, even if it was not their initial plan. Other circumstances could precede an exit, with those mentioned above being the most recurrent. The exit strategy is a plan more than a statement as several factors need consideration. They include clarity on the benefits of having the exit strategy in place, aligning the exit strategy with business goals and objectives, and determining the impact an exit will have on investors and successors. With a business exit strategy in place, it becomes clear what direction the business should take if or when a transition is necessary. Question -1: Do you think having an exit strategy is an important part of business operations ?

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Related questions

Question

Discerning the Strategies for Exiting Your Business

Business owners work hard to build up their businesses in a bid to attain success. They experience incredible excitement and enthusiasm to get a business going right from the start. However, business owners need to think about what would happen if they were no longer able to be part of the business. Numerous circumstances may occur which drive a business owner to exit their business. Exiting a business is not always negative. For this reason, the exit strategy should be in place as part of the long-term plan for the business. This will ensure that any future exit is well planned for, with a smooth transition or continuity where necessary. Also, a business exit may be an excellent option for a business owner seeking to make a significant return on their investment.

Certain circumstances precede the need to exit a business. These include the following:

A non – profitable business could require the business to be closed down entirely, or the business owner could consider exiting and allowing the next generation with fresh ideas to run the business and lead it to success.
Changes in market conditions – The economic climate makes it challenging for the business owner to run and manage their business.
Reduce business ownership – A business owner may be willing to reduce their ownership and also give up some control in the business to a family member or employee, if they can get financial value by doing so.
Opportunity to sell – There are times when things fall into place and open up the opportunity for the business owner to sell their business, even if it was not their initial plan.

Other circumstances could precede an exit, with those mentioned above being the most recurrent.

The exit strategy is a plan more than a statement as several factors need consideration. They include clarity on the benefits of having the exit strategy in place, aligning the exit strategy with business goals and objectives, and determining the impact an exit will have on investors and successors. With a business exit strategy in place, it becomes clear what direction the business should take if or when a transition is necessary.

Question -1: Do you think having an exit strategy is an important part of business operations ?

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here