An entrepreneur starting a business must have a clear vision, goals and game plan as to where the enterprise is heading. To maximize the return out of the business, the entrepreneur must have a carefully planned exit strategy. Most successful entrepreneurs have an understanding of when to exit out of a business.
Planning an exit strategy is as important as starting it. The objective should be to maximize the value of the company and minimize the amount of time consumed.
The procedure for exiting out of a business, involves the following steps:
- Agreement to exit out of a business must be established under some acceptable set of rules. It is best to settle disputes quickly, and document any terms and conditions that apply.
- Proper care should be taken to ensure a leader is designated and a team is organized.
- Seek professional help wherever it is necessary, especially in the valuation of the business.
- The exit strategy should be well planned, with assigning of individual responsibilities and a schedule for implementation.
- An announcement or a notice should be released so that interested parties be it the market, competitors, customers, vendors and suppliers, professional service providers, consultants, trade groups, employees, media, creditors and contractors are aware of the situation
Exit strategy in Malaysia can be categorized into:
Family Succession
The family succession plan must recognize and accommodate the needs, goals and objectives of each family member. The family's goals and objectives then become the basic building blocks for the development of the succession plan for the family's business.
Terminating a Business
A business may cease operations for many reasons and in a number of ways. When a business is terminated or its legal status changes, there are licensing and regulation requirements that must be met. There are also opportunities for improving the economic prospects at termination for owners and creditors through legal provisions of state and federal laws.
A business may cease operations for many reasons and in a number of ways. When a business is terminated or its legal status changes, there are licensing and regulation requirements that must be met. There are also opportunities for improving the economic prospects at termination for owners and creditors through legal provisions of state and federal laws.
Last Updated on: 18-11-2009
