Exit Strategy Example Business Plan

Exit Strategy Example Business Plan-87
As a founding director of Borland International, I had significant shares in that company when it went public in 1986, and that gave me an exit.I’d acquired the shares as compensation for planning and advice, not by investing money; so the return wasn’t measurable in the standard way.

As a founding director of Borland International, I had significant shares in that company when it went public in 1986, and that gave me an exit.I’d acquired the shares as compensation for planning and advice, not by investing money; so the return wasn’t measurable in the standard way.

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Having a minority share in a healthy, growing company, without any prospect of an exit, is a terrible scenario for investors.

My own angel investment activities include more than one investment in companies that are still healthy, still growing, still have happy founders, but no good prospects for exits in the foreseeable future.

So startups looking for angel investors or venture capital (VC) absolutely need an exit strategy because investors require it. And the rest of us, starting, running, and growing a business, but not looking for outside investors, will probably need an exit eventually; but there’s probably no rush.

The exit strategy related to startup funding, is what happens when investors who had previously put money in a startup get money back, usually years later, for a lot more money than they initially spent.

My general view on Exit Strategy is that it is a very difficult issue to answer properly because it is very difficult to forsee the future and each investor will have their own interpretation of the ‘correct’ answer.

But there are options open that must be analysed within the context of your business and industry so that a credible discussion can take place such that your potential investor has confidence in the abilities and ambition of your team.

And that should not be confused with similar phrasing describing the investors’ exit: an exit at “5X,” for example, would be one in which the investors received an actual exit amount, in money or shares they can sell, of five times what they originally invested.

You can understand how investors feel about exit strategy if you consider what happens to investors who don’t get exits. They put money into a company, but they get nothing back.

It is generally acknowledged that Management Team and Exit opportunity are the two most important factors. There is a brilliant video by Seth Godin in which he talks about a lot of things to include dealing with Investors and Exits, whereby he says that you have already agreed to sell your entire company when you raise one dollar of investment.

I am often asked, ‘Can a startup raise equity investment and not do an exit, i.e. It is the second of the videos in this blog and both are definitely worth watching.

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Comments Exit Strategy Example Business Plan

  • Why Entrepreneurs Need an Exit Strategy - Kauffman FastTrac
    Reply

    The most common favorable exit strategies are to sell the business, sell the assets of the business, merge it with another business or sell shares in the business to the public at large. Unfortunately, those entrepreneurs who do not plan an exit strategy will, at some point, exit from their businesses unprepared.…

  • What Startups Need to Know About Exit Strategies Bplans
    Reply

    The traditional exit strategy. When investors sit for pitches from startups, they expect the startups to cover the exit strategy. That usually means talking, in the pitch and in the business plan, about how similar companies in similar markets have been able to exit via selling out to a larger company.…

  • Exit Strategy Plan template - De Montfort University
    Reply

    Effective date at which contract and partnership ends. 7. Confirmation of final recruitment point date 8. Confirmation that all internal and external stakeholders are notified and internal marketing comms amended. Exit Strategy Plan template. The template provides a minimum requirement.…

  • SAMPLE STRATEGIC BUSINESS PLAN
    Reply

    This business plan is presented here to benefit and promote the services of eStrategy Partners, LLC. The information and ideas herein are the confidential, proprietary, sole, and exclusive property of eStrategy Partners, LLC This plan should not be construed as an offer to sell securities in Pipedream.com, Inc.…

  • How to address 'Exit Strategy' in your Investor Business Plan
    Reply

    When and Where to address ‘Exit’ in your Business Plan. The Exit Strategy will be mentioned in your business plan in tandem with your financials. So in the Executive Summary you will be mentioning how much money is needed by the business and what those funds will be allocated towards.…

  • How to Write an Exit Strategy Bizfluent
    Reply

    Create a Plan A and B. For example, if you’re in reasonably good health and your business is profitable, chances are that you’ll exit when you retire. However, you could become disabled or face a health crisis that would mean exiting the business immediately. Therefore, if the preferred exit strategy is to transfer ownership to a family member.…

  • How to Plan an Exit Strategy for Your Business QuickBooks
    Reply

    John Leonetti An exit strategy is a plan, ideally in writing, for an owner’s eventual transfer of the business to another owner. Most owners do not have an exit strategy in place because people who run businesses tend to focus a majority of their efforts on being in the game or competing in their industry.…

  • Exit Strategies for Small Business What You Need to Know
    Reply

    An exit strategy is part of the business plan, which is a document every entrepreneur needs. Exit strategies help business owners have an out if they want to retire, leave, or if the business fails. Exit strategies are also important for investors and lenders because they want to know their money is protected.…

  • Exit Strategy Small Business Plans
    Reply

    The exit strategy of your business plan needs to include a narrative addressing these issues. This Section of Your Business Plan Should Include For Loans State when the company will be able to start making loan payments; Refer to your financial statements, which must show the ability to make payments at the time indicated. For Equity Investments A statement about how and when investors should expect to be able to sell their stock, or your exit strategy…

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