Is your current small business slow? Are getting tired of it? Yes? Investing in a new one could be a better option but before you do so make sure that you already have an exit plan. Here are some strategies which will help you ‘go out of business’ smoothly.
Look for able buyers – You must advertise your intention to sell your business at least three years in advance. This will give you enough time to search for potential clients who will be willing to buy your business at a high price. By selling your business, you will exit not empty-handed.
Look for able buyers – You must advertise your intention to sell your business at least three years in advance. This will give you enough time to search for potential clients who will be willing to buy your business at a high price. By selling your business, you will exit not empty-handed.
Consider friendly buy-out – This is transferring your business to friends, family members or employees. This is similar to selling your business but your income here will be much lower. Although you will be dealing with people who you know personally, it is best to handle the buy-out professionally so that both parties win.
Go public – Initial public offering (IPO) creates a lot of frenzy. You should only consider this option if your small business is on a trajectory and there are very clear signs of it turning into a big company. You can't exit as soon as the company goes public. You can’t leave until the business is doing well and stable in the hands of the new owners.
Take out cash from the business – Leave enough cash that will allow the business to operate profitably. This is ideal if your business makes a lot of cash and if your business can stand on its own without close monitoring.
Go public – Initial public offering (IPO) creates a lot of frenzy. You should only consider this option if your small business is on a trajectory and there are very clear signs of it turning into a big company. You can't exit as soon as the company goes public. You can’t leave until the business is doing well and stable in the hands of the new owners.
Take out cash from the business – Leave enough cash that will allow the business to operate profitably. This is ideal if your business makes a lot of cash and if your business can stand on its own without close monitoring.