Entrepreneur Basics Entrepreneur Basics | Page 24

When It’s Time To Go One way of developing a practical exit strategy from a very profitable ongoing business endeavor without causing the “boat to rock”, is to reward one’s self with huge amount of “goodies” in the form of bonuses, pay checks, special shares or dividends and the likes, regardless of the company’s current performance levels. In doing so, the company will be able to deplete its current healthy revenue reserves and direct them into the coffers of the owner, thus creating a viable and quick exit when the time is right. Another form often utilized and is not really messy or complicated is the liquidation process. This style is used, when the home business owner has simply decided that enough is enough, and wants to close the business without any fuss. In this scenario the individual would just literally close the doors on the business and after paying off any creditors and other shareholders, putting up the equipment for sale if any, whatever balance left would be considered rightly his or hers. There would be no or minimal negotiations involved and certainly no lengthy time consuming processes to adhere to. There would also be no need for legalities such as transfer of control or redistribution of shares if the business was solely owned by one individual. - 24 -