Planning Your Business Exit

Author: Nazeer Daud | Posted: 07-05-2008 | Comments: 0 | Views: 3 |

Does your business have its liquidity event mapped out? Entrepreneurialism can be demanding, and drafting a plan can often be vital. If you have raised venture capital then the chances are that your investors will expect you to achieve liquidity at one point in the future.

One tough part of entrepreneurialism is not only working out if you have a good idea, but also establishing if it has the capability to scale, get acquired, or go public. If the answer to any of those questions is no, then it's essential that you establish what your long terms goals are. If you are not able to achieve liquidity, then the performance of your profit and loss account will be the only business metric that matters. It also means that, should you wish to move on in the future, you'll have to give up your businesses profits with no realizable gains.

One key part of entrepreneurialism is planning. Although your business may change routes along the way, having a solid plan to work from can often pay dividends in saving wasted time, energy and money. If you wanted to start a broadband business, for example, then it would be easy to think of potential companies that might want to buy you at a later stage. And, the market is certainly big enough to go public if you manage to gain a decent percentage of market share.

However, entrepreneurialism isn't always that simple. Some companies may have a completely new idea taking on a completely new market. In this instance planning your exit can get a little bit trickier. It's less likely you will have direct competitors who would look to buy your business, and therefore you have to consider the likelihood of achieving liquidity through an alternative route. Maybe a company would be able to achieve synergies through selling your product to their customers, or integrating it with their existing technologies? Or maybe if you manage to promote entrepreneurialism within the boardroom, a management buy-out could be an option?

The following are options to consider when planning your exit:

IPO

An IPO or initial public offering is when you make your shares available on the stock market. This is usually the most liquid market for equities, however you will usually require a sizeable market capitalization and stable earnings before this is an advisable option. At this point, there will be a firm price associated with the equity you own in your business.

Acquisition

If your company gets acquired then you may be able to gets a much quicker exit than if you hold out for an IPO. If you intend to develop great technology, but do not want to build the infrastructure to unlock its full potential, this can be a great option. Sometimes entrepreneurialism can be about doing what you do best, and then moving on. For some people, that's starting companies and taking them to a certain stage.

Sell Your Equity

It's possible for you to sell your equity while allowing pre-existing investors to keep hold of theirs. You may find that pre-existing investors are the best people to approach in this instance. However if the company has potential, a large pool of potential candidates may be interested. The board may also consider a share buy-back.

Rate this Article:

Article Tags: Franchise, Franchises, Franchise Opportunity, Business Directory, UK Business Directory, Ireland Business Directory, Ireland Franchises

Article Source: http://www.articlesbase.com/online-business-articles/planning-your-business-exit-405906.html

Print article

Send to friend

Publish this Article

Author feedback

About the Author:

CityLocal is an Ireland Business Directory & Business Franchise Opportunity. Our Internet & Computer franchises allow you to work from home and be Your Own Boss in UK & Ireland.

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Add new Comment

How to Scale Your Business Working From Home
By: Nazeer Daud | 05/05/2008 | Online Business
If you run a business from home it can often be harder to take it to the next level. Through efficient management, hard work, and dedication it's possible to harness the full potential of your business within the confines of your own home.

Top 10 Holiday Franchises: Small Businesses Made for the Season
By: Raymond Lawrence | 13/12/2006 | Business Opportunities
Owning a franchise is a wonderful business opportunity that more and more individuals are taking advantage of each and every day. And, with all businesses there are certain times of the year that are more profitable than others.

eBay Auction And Drop-Off Franchises
By: Diarmuid Kieran | 03/01/2007 | Business Opportunities
The growing wealth offered by eBay businesses

Top 10 Holiday Franchises - Small Businesses Made For The Season
By: Raymond Lawrence | 19/12/2006 | Business
Owning a franchise is a wonderful business opportunity that more and more individuals are taking advantage of each and every day. And, with all businesses there are certain times of the year that are more profitable than others. For the following 10 franchises the holiday season is one of the...

Franchise Ideas: What Franchise is Best for You?
By: Raymond Lawrence | 20/12/2006 | Business Opportunities
If you like the idea of being self employed yet entering the marketplace with an already established business then a franchise might be a good opportunity for you. However, there is a lot to learn about franchises before taking a leap into this entrepreneurial world.

Evaluating A Franchise Opportunity
By: Naz Daud | 29/04/2007 | Business
There are now franchise opportunities that operate in almost every type of business category that you can imagine. They are available in most price brackets and can suit most people lifestyles. Franchising is now a very reputable way to start a business and has revolutionized the way people do business...

Are Franchises For Resale For You?
By: Diarmuid Kieran | 21/12/2006 | Business Opportunities
The advantages and disadvantages of buying a franchise for resale from an existing franchisee

Franchise Business Opportunities - What is the Role of a Franchise Broker?
By: Raymond Lawrence | 17/08/2007 | Business Opportunities
If you are interested in buying a franchise business, it may behoove you to do so through a franchise broker. You should also consider utilizing the advice of a professional franchise consultant.

Got a Question? Ask.

Ask the community a question about this article:

Frequently Asked Questions

Can i get a franchise of yo china?
By: gurbaj | 30-03-2008
can i get a franchise of yo china?

By: woodking24 | 28-03-2008

Crunches and calorie burning
By: chd77 | 24-01-2008
how many caories do crunches burn?

Is Subway Franchise profitable? i want to start a ...
By: uig2606 | 12-01-2008
Is Subway Franchise profitable? i want to start a Subway Franchise, but do not know should I start? Will really appreciate answers. Thank you.

Q&A Powered by:

Latest Online Business Articles

Forex Market
By: Noor Mohamed | 13/05/2008
What is forex trading and where is forex market situated. We all know the other market very well. Stock market has a system of trading well known and it has an office and timings published. We are familiar with the timings of Stock market and its activities. Forex market is still an enigma for those without any previous knowledge of forex trading. Learn more

Wholesale Business Opportunity
By: Mirela Mirea | 13/05/2008
Tips for a succesful wholesale business

Finding Your Advertising Style
By: Lynne Saarte | 12/05/2008
one way to make advertising less of a chore and more enjoyable for you as a business owner is to find your advertising style

Affiliate Marketing Advice: Finding the Right Sponsor
By: Rosamunde Bott | 12/05/2008
The first things many people think about when looking for a home business opportunity is how much it pays, and whether they like the product. But if you want to get off to a good start, you need to make sure you have a good sponsor.

Business Record Keeping for Accounts and Tax
By: Nazeer Daud | 12/05/2008
Running a business that complies with the law and common business sense requires the setup and maintenance of some form of accounting system.

Don’t Forget Your Loyal Customers
By: Lynne Saarte | 12/05/2008
all it takes is a reminder for your customers to feel like doing business with you again

Have a Plan Before Designing a Business Card
By: Janice Jenkins | 11/05/2008
with concise facts and straight to the point information a company will benefit from business card prints

Making Money Online: Five Myths You Need to Know About
By: Kirsty Cussens | 11/05/2008
Making money online sounds so idyllic. Easy, fast and lucrative! But if you are thinking of starting an online business be careful! Don't fall into the trap of believing any of these five online myths.

More from Nazeer Daud

Business Record Keeping for Accounts and Tax
By: Nazeer Daud | 12/05/2008 | Online Business
Running a business that complies with the law and common business sense requires the setup and maintenance of some form of accounting system.

The Business Reasons for Strong Search Engine Rankings
By: Nazeer Daud | 09/05/2008 | SEO
Running a modern business needs a least some concept of vital modern technologies, like the Internet and email, in order to keep up with the competition and exploit emerging opportunities to take things to the next level.

Advertising Your Business
By: Nazeer Daud | 08/05/2008 | Advertising
Marketing your business is one of the most fundamental steps in achieving success. In order to have a successful, established business, it’s important to be sure you’re advertising your business in an effective, value for money way that’s likely to generate a return on investment.

The Advantages of Business Franchising
By: Nazeer Daud | 08/05/2008 | Entrepreneurship
If you are looking to start a business using the franchising model, then there are certainly lots that you have to consider before hand. It's also, probably, wise to consider consulting with a suitably qualified specialist.

Buying a Franchise – Internet Business Models
By: Nazeer Daud | 02/05/2008 | Small Business
If you are considering buying a franchise, especially an internet business model, you should make yourself aware of the disadvantages of a franchise as well the advantages.

Online Business Services

- Printing Services Services

- Time & Attendance Solutions Services

- Furniture Systems Services

Article Categories

Article Marketing

Article Notepad

Stop Duplicate Content

Term Papers

Need Help?

Sign up for our email newsletter

Receive updates, enter your email below

Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved.

Planning Your Business Exit

Article Comments

Related Articles

Got a Question? Ask.

Latest Online Business Articles

More from Nazeer Daud

Need Help?

Site Links

Webmasters

Business Info

Sign up for our email newsletter