You’re about to launch your brand new company. Do you have an idea how you will get out of it when the time comes to move on from the business?
Even though being a startup founder may have been your dream for some time now, it is still necessary to have a well thought out exit strategy for when you’re ready to move on. Creating one can be non-negotiable as it is often something that many investors look for. They will only be happy to hand over their money to you if they know there is a very low risk of any problems developing – and that includes when you decide to leave.
Here are some smart strategies that every savvy entrepreneur needs to know.
Sell The Business On The Market
This is a very popular option for small businesses. Your company should be attractive to most potential buyers if it is profitable and has plenty of assets. When you are going through the selling process, be sure to get a lawyer on your side, such as The Weisblatt Law Firm so that they can be on hand should any buyout disputes arise. When you are looking for a lawyer to aid you, make sure you find one that specializes in business law.
Merger And Acquisition
Another option you have is to see if a merger and acquisition is possible. This is when a larger company decides to buy you out and merges your firm with theirs. Normally, you would be bought out by a competitor or a company that offers similar products and services to the ones that you do.
Sell To Current Managers And Employees
Do you think that any current managers and employees might be interested in buying your business? If so, then this could be the best route for you to go down. This can be advantageous for the future of the company as you will be selling to people who are already invested in it. This scenario could make it possible for you to stay on the company’s board as a shareholder or advisory.
Keep It In The Family
Some entrepreneurs try to keep their business in the family so that they can create a legacy for themselves. Just like selling it to managers and employees, this option also gives you the chance to stay involved in the running and management of the business. This kind of transition is often very smooth as well.
Hopefully, one of these methods above has given you some inspiration for your own exit strategy.