Planning a Profitable Exit Strategy
Too many businesses during the recession had no real exit strategy other than bankruptcy court. Cash flow was so erratic that when any business loan option dried up it put them on the brink of disaster, until eventually they failed. They had no idea how to keep their inventories stocked or how to pare down their expenses when needed, other than laying off numerous employees, causing havoc on employee morale. Even if they had survived, they would not have been able to do it at the same level of proficiency as they would have to re-hire (a costly endeavor) and re-tool to get back up to speed afterwards. They literally strangled their own potential future prospects because they didn’t have a plan.
Know Your Strengths
Every business should have a good idea of where the value lies in it. It may be a specific product that you alone manufacture. It may be a client list so long, that when the economy recovers sufficiently, it will be instant pay dirt for someone. It can be trademarks. Assets aren’t just about real estate and stock prices. It has to do with how you created the business and how you can dismantle it later, without losing everything.
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Categories: Business, Credit and Loans Tags: Assets, Bankruptcy Court, Brink Of Disaster, Business Loan, Business Owners, Cash Flow, Costly Endeavor, Declaring Bankruptcy, Employee Morale, Exit Strategy, Future Prospects, Havoc, Intellectual Property, Inventories, Loan Option, Pay Dirt, Pockets, Proficiency, Recession, Stock Prices