Have you ever considered why the business was closed? There are many reasons – from changes in ownership of the death of a partner, so you want to be prepared for the occurrence of planning your business.
We think that you have to do your business plan with the visible end. That means not only has a successful and sustainable business with many customers who are satisfied and filled with employees. This means that you can sell, walking away or transferring business and business can continue to function without you. If not, you don’t build a business but “work”. Some of you might want to build a “job” but for others who want to build equity – for themselves, their families or their goals – then build a business that can be transferred.
A exit is important if we follow a guerrilla approach to work with the final destination! Entrepreneur Series, Steve Bolf, said: “When you determine and write your goal, you have taken an important step to succeed. Your success can take you on a different path than you have, but how you don’t know you don’t. Write it on the beginning ? “
Exit strategies are important business planning exercises with specialists with their own rights. To overcome all possibilities beyond the scope of the current article, but some possibilities include:
Sell to competitors
Sell or gifting to family members
Sell to third party shareholders – for example “GO PUBLIC” or bring venture capital
Join the main client, supplier or strategic partner
Above, in various forms or combinations is all options. At this point the planning process you don’t need to decide. Having a vision for what you want or want can help you plan differently. For example, the system needed to run a public company (audited financial statements; quarterly reporting, etc.) is not the same as a family company where internal statements and year-end reviews may be more than enough.
So how do you start by putting this vision?
In the planning stage, you need to answer questions like:
Potential owner entity
Effective Date of Organization
Entity’s legal form, such as corporations, LLC, partnership, NPC, or single ownership
Entity fiscal period
The length of the entity’s time to operate
Location place of business
Provisions for the Allocation of Profit and Losses
Salary and benefit provisions, including bonuses from each owner
The amount of time each owner will spend business
The duties and responsibilities of each business owner
The title of the owner and other management team members
Authority of each owner in a contract situation
Provisions for Owner Withdrawal
The provisions of how business must be carried out in the inability or death of a owner
Provisions about how the interests of the owner must be compensated for their death or inability
Procedures that must be followed if there is a dispute
Identification and assessment of initial assets invested in business if not cash
Situations that can cause dissolution of business or legal entities
Accounting practices must be followed
Whether the audit must be done
Main supplier, i.e. Law, Banking, Marketing and Finance
Dividend policy or bonus
While the list above is wide, it is not comprehensive.
It does not eliminate the need for professional planning assistance – but can give you questions to be asked. While the above list is initially for the structure of the partnership – its value can be translated into corporate structures and others. The most important thing as entrepreneurs who are “cooks, bottle washing machines and presidents” often we ignore answering the questions above, for reasons that range from:
Too little time
Too many things for