THE RELEVANCE OF EXIT ROUTES FOR EARLY BUSINESS OWNERS

Early business start-ups are usually very eager about starting a business and getting good investors, majority of little start-ups never think of maybe a business exit.

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What is a business exit and why should it be considered?

A business exit usually occurs when the business owner decides to quit his portion of the business, completely surrendering what he owns, several reasons could lead to a business exit. A business owner can decide to exit a business if he wants to completely sell out his portion of the business as a result of being scared of the future, sometimes the business may have to be given out to creditors by the business owner on the basis of paying off a certain loan, a business owner can also will his business to his children or relatives completely, making him lose out on every form of entitlement but this usually happens when the business owner is no longer alive and on several occasions business owners sit back and employ others to manage their business for them, or just completely sell off the company.

Exit Routes for Business Owners.

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Whichever condition leads to exiting a business, expert’s advice that entrepreneurs should always have an exit plan early in business as this will present the company to good investors. There are different exit options available for business owners: The business owner may decide to get a merger or just completely sell off the business to a buyer who will buy at a good rate and who will not ruin the reputation built over the years.

Completely retiring without selling the business is also a good option, people who opt for this option are usually those who feel tired or exhausted going through the regular daily routine and they just decide to spend more time with family, usually during old age.

Another exit route occurs when there is debt, in situation like this, the debtor or debtors are paid first then the remaining asset or other profit is usually shared among shareholders. New business owners regularly make the mistake of getting too many investors into the business and this will make companies who will want to acquire the business run away very fast, in my own opinion I feel it is better to get two major investors than several little investors, this is very necessary if your exit plan is to eventually sell your company.

If on the other hand, you have an exit plan that will eventually help you relax after some years and have your business bring in regular cash for you, then it is important to make your business a type that can survive without your physical response.