Question

Many business plans describe an exit strategy...what your plan is to “exit” your business. An exit strategy is about creating a system that you can execute to produce desired results…and produce consistent results.

Exit Strategy: Explain how investors will be able to cash out or sell their investment, such as through a public offering or payback loan with interest. Exit Strategy includes a detailed description of the systems that you will execute to systemize your business.

An Exit consists of either systematizing your business, cashing out and selling, going public, succession planning, or liquidation. (My business: a rehabilitation facility to help athlete comeback from injuries. Physical therapists, orthopedic surgeons, personal trainers, and coaches as employess)

What would your exit strategy be if you started a business? Why?

Answer 1

There can be many exit strategies depending in the type of business which was started by me. I will consider the best case i would choose to.

Situation - When the business is a sole propreitorship model -

Focus points -

a. I am the sole owner of the business.

b. The business is not too much expanded.

c. There is only one or maximum 3 centres related to my business from which i am earning.

Exit Strategy - Acquisition -

The target customers of my business are athletes who need a medical or physical assistance for proper training and recovery from injuries. The business is about the physical wellbeing of the athletes. The employees includes doctors, nurses, coaches etc.

Since, there are various physical fitness business in the market, and particular teams, sponsors, Club managers etc are in requirement of the medical assistance for their players and athletes. It would be a good option to let our customers acquire the business and perform a backward Integration(from the customer's perspective).

There will be several steps to this -

1. Analyze and assess my own business and valuation of the business.

2. Current profit levels of the business.

3. Assessing the Demand of such medical aids in the market.

4. Getting the legal assistance.

5. Acquisition with related terms and policies.

Advantages of such exit -

1. It will be a clean exit for me from the business.

2. The prices would be nogotiable also the terms will be negotiable.

Disadvantage or risks -

1. It is a time consuming process.

2. There is a risk as people may not be interested to buy the business.