A shop in Kibera. [Photo/mediad.publicbroadcasting.net]
There are times that require an owner to get out of the business; sometimes for very good reasons, sometimes for bad ones.
Such an exit often comes in the form of selling the business, transferring ownership or in less fortunate cases, dissolving the business entirely.
Determining when it is time to hit the road can be difficult. This article sheds light on when to make an exit!
A lucrative opportunity presents itself
Exit plans can be positive. If the market is frothy and the hype surrounding your industry creates a lucrative opportunity, you may choose to sell.
If for example you have an online social site and facebook comes calling, why not sell?
It is a hard truth to swallow but the best entrepreneurs are able, to be honest with themselves about it.
Have the field vision to recognize this point in the company’s lifecycle and the humility to do something about it.
Entrepreneur, a leading online magazine, advice that anytime you have an opportunity to get liquidity from your SME, you need to seriously consider it because running a business is risky and the longer you hold on to that business and the bigger you get, the more chances are you risk of failure.
Market is moving against you
In this era of disruption, most businesses are facing their ultimate demise.
You need to recognize this and cut your losses before it is too late.
If you see that there is a megatrend on the horizon that threatens to make your business irrelevant, it is time to make an exit plan.
According to market observers, you have got to keep your eyes peeled for these trends.
Even if you are lucky enough to recognize the tidal wave coming, you may have a very short window for action.
The business is no longer enjoyable
If you do not enjoy your business anymore, maybe it is time to sell.
As the business grows, startup problems like financing and making payroll, which often excites an entrepreneur, fade away.
According to Entrepreneur as the company grows, so does the value and owners shy away from taking risks like they did in the initial stages.
When you get to this stage, it is time for an exit plan.
Business owners should always be looking to exit their investment anyway. It is the smart business decision.