Essay Example on Exit Strategy for Business

Proactive preparation for business operations should be a matter of priority to any entrepreneur having an intention of entering or leaving different industries for both short term and long term interests. Adequate planning and strategy significantly influence the nature of transactions and value perception among stakeholders in the enterprise. Business operators must recognize that divestiture is an integral aspect of the business life cycles hence the need to be incorporated into business management. The understanding of the fact that sales are just like any other process that requires a constructive mindset that brings together various steps in establishment, operations, and assessments.

Key Takeaways from the Video Entitled Exit Strategy for a Business.

The video encapsulates a four-question process on how to determine an exit strategy and plan for it. The first question concerns what the business owner wants. The aspect requires one to understand the strategic purpose for wanting to exit a particular business. In essence, it defines whether the owner wants to sell entirely the business or lease to someone else while getting the profits (Adelman, & Marks, 2013). The second is, why do you want that? There are many motives for exiting a business, the stronger the reason, the more meaningful it is for you, and thus it will be more beneficial to you than when your motive is simply to exit. The third is, when do you want to accomplish this? It has everything to do with time, money and risk (Adelman, & Marks, 2013). The time attribute comprises of the short-term exit or eventual exit. The fourth question is what the next step is? After finding out what one wants, why you want it, and when to accomplish it then one requires a determination of their current position and the necessary steps to take towards achieving the next goal.

As thinking turns to action, owners of enterprises need to focus on the right type of businesses to operate at any given time. They should also understand that though the clients they serve dictate their effectiveness of operations, they should not necessarily determine the exit from a particular franchise (Dave, 2017). Maintaining agility and readiness to take advantage of emerging excellent business opportunities is an important way of ensuring strategic operations, or exit from a given merchandise. When business operator gets older, the returns on investment predominantly dictate their activity. Therefore, precautions dominate most of their enterprise decisions as they try to secure their interest from unprecedented risks of losses.

Enhancing the value of business exit requires the business owner to identify personal and entrepreneurial goals. Furthermore, it is important to determine how the business owners personal goals and business interests influence the timing of business exit (Adelman, & Marks, 2013). If an investor finds the right market, focus on positive aspects of business operations, understands how their various objectives and value drivers fit, the close look at its cost-benefit imperatives adequately informs the exit (Dave, 2017). One should ensure he or she is fully prepared for life after the exit and preserve the wealth generate from the exit of ones business.

References

Adelman, P. J., & Marks, A. M. (2013). Entrepreneurial Finance (6th ed.), Pearson ISBN 978-0-13-314051-4

Dave Crenshaw (2017). Exit Strategy for Business. Accessed on April 23, 2017, from https://www.youtube.com/watch?v=NyXLP10O3WI