Question.2007 - Exit strategies are an important part of a business plan. You will need to have a plan for how to get out of a failing business, so that you don't continue to lose money. You may also reach a point you want to get out of the business to pursue other opportunities. Exit strategies can vary, but an exit strategy is something all businesses should have. Review the link below and read the articles about Exit Strategies and feelfree to search for other resources. httRs://startuRnation.com/manage-v.our-business/business-succession-exit-strategi§{ B> Describe the exit strategy for your business. Consid!er what you will do if the industry changes significantly (e.g.book stores and the invention of book readers and electronic books). How willyour business adapt?
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A business exit strategy is one of the strategic plans of an entrepreneur when they can sell their ownership in their company and thereby optimize their own financial positions and once the company gets successful, the profit can be used to invest in other aspects and overall the exit strategies can help the entrepreneurs to bring down their total stake in the business and help reduce risk or avoid any loss. One exit strategy that I find best for a business is liquidation that it involves closing down the business and selling the assets to get better opportunities. This is because till the time the business is running well, it looks attractive to all buyers and once it is not, the buyers loose their overall interest here. In this case, liquidation can seem to be the safest option and fastest form of exit strategies for the business especially if it is a small business (Pinkovetskaia, 2020). However, if the business is on a large scale and has creditors involved, the money taken from liquidation will be used to pay off their debts and the return on investment can be lower as they will only get money from selling business assets. Incase, the industry changes significantly, the business should adapt to the latest technological advancements because this will help them survive in the market and cater to the consumers who will also want to shift to the new technology however there will still be some set of consumers who will want to stick to old technology only. In this case, the business should keep both aspects open to cater to both the type of customers in the market like those who want to read hard copy books and those who shift to digital reading and electronic books to make sure they do not miss on any source of income and keep making profits from every type of customer. References Pinkovetskaia, I. (2020, March). Exit of Entrepreneurs from Business: Reasons and Strategies. Research Gate .More Articles From Business Law
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