Exit Strategy
Entrepreneurship is a risky business and requires a certain type of personality to really succeed at this lifestyle. Every and any business or idea will certainly end when the time is right and it is important for those wishing to exploit profits when to get out of the business. The purpose of this essay is to explore the options that entrepreneurs and investors have to recoup their investments and continue on to the next stage in life. This essay will explore exit strategy options and the considerations that must be taken into account before performing these actions. Ultimately this essay will describe how exiting a business venture is just as important as any other component of the process.
Why Get Out?
There are many reasons why anyone would want to change something up in their lives, but when it comes to venture capitalism it is important to understand all the implications that accompany such a move. There are many conflicting and interesting reasons why someone would begin retreating away from a business investment. It requires a sense of profit, timing and the ability to take advantage of the current circumstances.
With entrepreneurial businesses, it is vital to plan for the future, growing the value and attractiveness of the business by implementing a clear development strategy from the beginning, including putting in place a strong management team to lead the business following the eventual departure of the entrepreneur. Taking an exit is not something which can happen easily overnight and time spent planning for the inevitable and structuring the business correctly should be approached with care.
Many times it is difficult for investors to leave their projects. Emotional attachment is very dangerous in the business world and it is important to keep profit margins and victory in mind when deciding to stay or go. Bloomberg (2006) suggested that "Small-business owners and entrepreneurs are involved and invested and personally identified with their businesses in ways that employees in large companies just aren't. When should they start thinking about retirement? It's hard to say when, because they...
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