More often than not, the closure of a business is not discussed or even entertained by entrepreneurs. It is an aspect of business that no one wants to talk about. Or if ever they do, it is done in hushed tones.
But the closure of business is part of a gruesome reality and an entrepreneur must be prepared just in case.
Entrepreneur.com.ph has listed down five tips that will help you in one of the saddest moments of your business - its closure.
1. Plan your exit when you start the business. Will you sell your company, pass it on to your children, or take it public?
2. Take time to understand how your chosen exit affects business planning. Will family members need to be trained to replace you, for example?
3. Consider the cost of each strategy—loss of the ability to keep financial information private if you sell or go public, for example.
4. Your investors have their own exit strategies. Be prepared to discuss their desired timetable for exiting your business, how they see it happening and their expected ROI.
5. Plan well ahead before you leave your current business. Consider starting another business, teaching, volunteering—or becoming a philanthropist.