Online Businesses and Exit Strategies
I was reading an article this afternoon and the author of the article made a very key point. He stated that most people when setting up their business often neglect to think about the part where some day they may want to sell (Exit Strategy).
In his article (Exit Strategies for Your Business), the author talked about a response a businessman had for his group of Harvard Business School majors. The students did not understand why this business owner would not build his business any bigger so he could sell it for very large bucks. The business owner’s response, “What part of 30-hour work weeks and a $5 million personal income don’t you understand?””
This business man was not ready for that exit strategy that these students assumed everybody would have in their cross-hairs. Reread the above quote again and see what your decision would be if you were in this business man’s shoes. (Of course, you couldn’t be because everybody is different!)
THE EXIT STRATEGY OF YOUR ONLINE BUSINESS
When I first got into Network Marketing, I remember the first company that I worked with. One of their messages was in regards to the idea of exit strategy. They had the plans in place for your business to be willable to family members or a close friend. However, one other aspect they had in place was for provisions for you to continue earning from your business even in the event that you chose to retire. In order for this to take effect, you had to give up a portion of your income to the person that you were under for them to take over for you.
The other alternative was that you could outright sell your business.
PLANNING FOR YOUR ONLINE BUSINESS
I don’t want you to start thinking about selling your online business when you should be thinking about what it will take to succeed with your online business in the first place. Let’s not get too far ahead of ourselves. After all, you can’t sell something that you haven’t built!
It is great to have in mind some ideas for your exit strategy however, let’s keep that aspect in perspective.
In my article (The Rising of the Phoenix), I made reference to “rebirth of business”: Just as the Phoenix must die and be reborn, so is it often in business. Your business often goes through the trials of uncertainty (and hopefully is reborn).
Building the business is often a dubious task filled with trials and tributes but we must keep in mind what our site is: keeping the end in site!