Building Your Dream and Preparing for the Worst
If you are a business owner, then you have likely thought about almost every single scenario. For those that own a brick and mortar location, you’ve probably even thought about how to get out when there is a fire. However, the one plan you have likely not thought about is an exit strategy. What is that? It’s a specific guide for you when things either go south or when you are ready to move on to new ventures. To learn more about an exit strategy business plan for your Dallas, TX company, contact R Moon Consulting. We are the experts you need for this very thing. Call us at (800) 571-7047 to get started.
An Exit Strategy Business Plan for You
So what actually is an exit strategy? In a nutshell, this is a specific and strategic plan for an entrepreneur to sell their interest or stake in a business. This could provide a profit if the business itself is successful. However, an exit strategy within a business plan is often there to actually help minimize losses when an entrepreneur sells its stake. Though this sounds very scary, exit strategies are there to serve you, not scare you. An exit strategy business plan example might be a strategic acquisition. In this scenario, you might plan with another company to strategically buy most or all of your shares in your business. You often hear about this happening catching owners by surprise, but this would not be the case for you. There are many other choices for you to pick from which is why it’s important to work with a consultant or consulting agency when writing a plan like this. Similar to when you may need something like HVAC duct sealing. While you can do it yourself, you’ll experience better results and more satisfaction by relying on experts.
Top Exit Strategy Plan Options
When it comes to planning an exit strategy, there is no one way. Rather, there is no exit strategy business plan template. Every business and every plan will be different because it is all based on you. It’s based on what you want, what you have planned, what you currently have, and so on. There is no way to say that what worked for someone will work for you, but that in mind, there are several options to consider.
- Merger & Acquisition (M&A): With this plan, it usually involves merging with a similar company or just being bought out by a larger company. This is considered a win-win for bordering companies with complementary skills. You get to step back from the business without hurting your finances or employees.
- Initial Public Offering (IPO): This is a viable option for a larger business, but most certainly not for smaller businesses. Going public is a long and costly process, which is not always possible for smaller businesses. There is also the risk of being liable for things since public companies are held to strict standards.
- Sell to Friend: Selling to a friend or valued business owner is not the same as an acquisition. You won’t actually be combining two resources into one. Instead, you are selling your interest in the business and walking away. This is often ideal for those that want a fresh start.
- Liquidation: With a liquidation, this is an immediate, close up shop and sell everything situation. Smaller businesses dependent on a single source or individual may have this as their only option. In that case, you may need some help reworking your business for a possible buyout or acquisition.
- Liquidation Over Time: If you are lucky enough, you may get to liquidate your business over time. It may still shut down, but it won’t be immediate. In this case, the owner will typically extract funds over time rather than preparing the business for expansion.
This can all seem very overwhelming to new business owners, which is why it’s recommended to work on this with a consultant. For that, you can rely on R Moon Consulting. We can help you with everything from how to write an exit strategy business plan to employee development coaching. We are here to help business owners just like you find what they need to make their business work for them.
Frequently Asked Questions
- What is a good exit strategy?
- A good exit strategy will have everything you need to move on from your current business. It will include information about a retirement plan, pension plans, plans for spending or earning money, and so on.
- Why do you need an exit strategy?
- You need an exit strategy for those just in case moments. There is no guarantee that a business will thrive and survive the way you hope it will. If that is the case, you need a plan to ensure you and your money are protected. That’s why you need an exit strategy.
- What is a business exit strategy?
- This is a strategic plan to sell your interest or investment in a company. It’s an opportunity for entrepreneurs to liquidate or reduce their stake in a business. This is often meant for those wanting to retire or spend less time working.
- What should be included in an exit strategy?
- One of the most important things that needs to be included in your exit strategy is what will happen to your business once you sell. This could be an acquisition, merger, IPO, or just simply shutting down the business. This is a critical step to understand where your money is going.
- How do you make an exit strategy?
- Your best bet for preparing an exit strategy is to work with a consultant. They will go over every single detail with you, figure out what it is you want, and help to build a plan from there. While you can do it on your own, it’s best to work with a professional for expert advice.
Connect With Our Team Today for More
When you need help with an exit strategy business plan in Dallas, TX, look no further than R Moon Consulting. Dial (800) 571-7047 to schedule your consultation today.