Verified Document

Exit Plan For A New Business Consists Business Plan

¶ … exit plan for a new business consists of two components. While the exit plan tends to be overlooked, there should be one for two scenarios -- failure and success. No business plan likes to talk about business failure, but in the event that the business does not succeed, the proprietor needs to know how to exit the business gracefully. The main assets of the food truck business are the truck and equipment, and these can be sold on the secondary market. Since the truck does not plan on having too much debt, the proceeds from these asset sales should cover the debt. The downside equity of the business has been protected by the LLC business form. So much of the downside risk financially has been covered by the way that the business has been structured in the first place. Unwinding the operations is as simple as laying off the staff and selling the remaining assets. The part of the exit strategy that goes...

In this case, there probably will not be one. The food truck business is slated to be part of a growth strategy. However, there is no model for taking food trucks -- even fleets of them -- public. In general, the idea with this business is to make it a career. However, should plans change, the business can be sold to another private investor. The ability of the company to sell will be dependent on the market for food trucks at that time. Should the trend be over and the market is poor, it is worth considering that food trucks might not have much resale value. This is the more complicated part of the exit strategy -- a scenario where the business is successful but there are no buyers.
In such a situation, several options are identified (Robbins, 2013). One option is to bleed the company dry. A profitable but unsellable business can…

Sources used in this document:
Works Cited:

Robbins, S. (2013). Exit strategies for your business. Entrepreneur. Retrieved March 25, 2013 from http://www.entrepreneur.com/article/78512

SBA.gov. (2013). Getting out. Small Business Administration. Retrieved March 25, 2013 from http://www.sba.gov/content/plan-your-exit
Cite this Document:
Copy Bibliography Citation

Related Documents

Business Plan -- Solar Panel
Words: 5347 Length: 20 Document Type: Business Plan

CSE is capable of fine-tuning, improving or repairing solar panel systems as need be. The company is also capable of providing consulting services. There are many customers who do not fully understand how solar energy systems function and can benefit from the consulting function. Consulting will also act as a marketing tool, driving customers to our sales and installation business. In the early stages, the business is expected to be

Business Communication Relating Redundancies Check
Words: 5732 Length: 20 Document Type: Research Proposal

" According to Short, Williams, and Christie (1976; cited by Van Den Hooff, Groot & De Jonge, 2005), Social Presence Theory notes that "communication media differ in the degree to which they can communicate (or simulate) the social presence of the communication partners through the use of social cues (both verbal and nonverbal cues)." This theory purports that if a medium can only communicate limited social cues, communication partners do

Relocating an Existing Business
Words: 4790 Length: 15 Document Type: Term Paper

Relocating and Existing Business Business Relocation Literature Review: Ronnie's Place Convenience Store Four Oaks, NC One of the most integral parts of successful business transitions of any kind is associated with proper and seemingly exhaustive research. A literature review of the particular issues associated with any business trend or transition can serve any business owner no matter how small their scope. Though it is important to understand the local and regional aspects

Exit Strategy of American Troops
Words: 2771 Length: 9 Document Type: Term Paper

American will be better equipped, militarily and monetarily, to deal with the threat of terrorism once our troops are withdrawn from the country of Iraq. It is not the goal of those political representatives, leaders, or individuals who support the withdrawal of American troops from the country of Iraq to cause further destabilization of other nations or to bring further harm to American itself. It is, in fact, the position

Impact of Information Technology on Disaster Recovery and Contingency...
Words: 2616 Length: 9 Document Type: Term Paper

New York State firefighting history is a microcosm of early and modern disaster preparedness. Definition of disaster in the historic era and modern era. Early historical facts. The need for uninterrupted communication. Response to needs. Advent of the Internet. New needs, new responses. Worthiness of Disaster Recovery and Contingency Plans for keeping communications flowing smoothly. The overall importance of communication. The firefighting department of New York City, generally considered to be the first of organized efforts to combat community

Business Plans Marketing Plan and Evaluation the
Words: 2749 Length: 9 Document Type: Business Plan

Business Plans Marketing Plan and Evaluation The marketing plan should revolve around the marketing mix. The mix encompasses the four Ps of marketing, each of which will be addressed in turn in this business plan. The four Ps are product, price, place and promotion (NetMBA, 2010). With respect to product, the coffee shop will be a premium example of a coffee shop. Australia has an exceptional coffee culture, so good that it

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now