Exit Strategy is a method or strategy that must be carried out by business people if their business no longer provides returns according to plan and even loses money, so they have to liquidate their company so that it does not become bankrupt.Even though to make an exit strategy decision, a businessman must first have made a maximum improvement effort, but if there is no change in business and an increase in income. then the businessman is forced to do an exit strategy to prevent more losses, or become bankrupt, what do you think.
Should we do an Exit Strategy in Business?
- Thread starter Suba
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This exit strategy is what no businezzes ever dreamt to have simply because it is contrary to the principle of going concern which stated that a business is expected to operate infinitely.
I believe that this is something that is very necessary to have in any business because there is no point in beating a dead cow. If it gets to the point where the business is no longer feasible to be carried out, you should try and close up shop and sell off what is remaining.
I don't have exit strategy in businesses I enter into because I always do a comprehensive and realistic feasibility and discover that it is right for me before indulging in it.
Any competent businessperson would develop a strategy for exiting in case the venture becomes harmfully unproductive.
This may entail registering a business as a limited company to ensure that the proprietor does not suffer financial damages in the event that the venture finds itself in financial trouble.
This may entail registering a business as a limited company to ensure that the proprietor does not suffer financial damages in the event that the venture finds itself in financial trouble.
I agree that every business should have an exit strategy. When your business is not doing well and you cannot think of ways to improve the situation, you have to either liquidate it or sell it to somebody. There are also situations that the business owner would like to retire. In this case, if your business is making profits, you can make good money selling it.
Before I start a business, with my level of knowledge, I have considered everything and I am sure I am going to forge ahead with that business no matter what. It is not bad to have an exit strategy for those who actually have.
I have not find a business that has an exit strategy. The objective of every business is to continue to operate indefinitely even though there are may be unexpected causes in future. So how could one expect his business to stop operation?.
It is possible for some entrepreneurs to have an exit strategy. I believe such entrepreneurs don't have faith in the businesses that they are into. For them, it is a gamble that might work or might not work.