Exit Strategies for Businesses

Many investors are only interested in investing money into an enterprise for a limited amount of time. They want to know when they will get their money back and what sort of return they will be receiving at that time. Both issues are closely linked. Therefore, when preparing your business plan, to pitch to potential investors, you will need to make sure that you have outlined your long term plans and a sound exit strategy.

In order to do this properly you will have to ask yourself a few questions about your own personal plans regarding the business. Do you wish to stay involved in this business in the long run, or are you more interested in getting it off the ground and letting someone else take over then? These are the kinds of questions you should deal with in your exit strategy.

You will also want to know a little about the investors you are pitching to and what their expectations are regarding the future of the investment:



There are a number of exit strategies you can consider:



While these two options above are quite practical and effective, they are professionally frowned upon and you may wish to propose a more sophisticated exit strategy if you wish to impress potential investors.

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Eva Irwing shows you how to write a winning business plan at www.businessplanning.ws where you will learn about the business plan outline and content, how to present your business plan to investors and bankers and what business plan software to use to insure your success.