How To Set An Exit Route

Planning for your new business start up and its future is no less important in business than it is in your personal life.  Many start-up mistakes and poor decisions can be avoided. 

Paula Wynne, successful businesswoman and author of 'Create A Successful Website' guides home business start-ups on making these often tough decisions.

How to set up a home based business plan

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And no, Setting An Exit Route is not a roadie film or anything similar. Having an exit strategy, also known as exit route, is just what it says on the tin.

It is a plan for exiting the business or company, either due to an unsuitable situation or by forward planning, which is why I am mentioning it now.

You may want to maintain a long running family business in a cottage industry and keep it that way. No problem with that. Or you may have plans to make a mint and then let someone else take over when the time is right to sell.

This is where your exit plan comes in handy.

Jo Haigh, from fds and MGR advises that you plan your exit the day you start your business. In other words, always have in mind what your business should look like to potential investors to get the best value possible. Having a great management team and a strong brand are steps in the right direction.

 

Karen Hanton advises home business start-upsKaren Hanton On Mangement Strategies...

It is good to have a high profile shareholder.

If you have a good proposition, it shouldn’t be too hard to interest somebody relevant to your audience in return for a small share.

 

Most entrepreneurs set up a Strategic Management Team with a clear exit plan for some point in the future. Investors will be interested in this, as it shows them a way that they can recoup any money they invest in your business.

The most common exit route is selling the business to someone else. And if you have an investor, they get a return on their investment once the sale is complete.

Deciding to exit, or not, doesn’t make or break you as an entrepreneur, it just decides the future outcome of your online business. Don’t stress over this now if you hadn’t even considered this option.

You don't have to make a decision until you know what is best for you and the business. If you plan to build the business with a clear exit route in place then remember to make notes in your SWOT analysis.

These are new and exciting times and carefully thinking things through is vital.  Have a read through some of the many articles on starting up your home business, including how to name and host your home business website, how to set and acheive goals and many more in our How To section.

Award-winning entrepreneur of social networking site, iHubbub, and author of ‘Create A Successful Website’ and Pimp My Site, Paula Wynne is co-founder of iHubbub, a home business social community.

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