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Business Plan Tutorial: Exit Strategy

Exit Strategy

How do you plan to pay off the investors if the company does not succeed? Just in case, show the scenario the other way as well (i.e., if the company succeeds). Exit strategies are not always necessary in business plans. Research your audience to determine if an exit strategy should be included. When in doubt, be prepared to include an exit strategy just in case. 

Questions to answer in the exit plan:

  • Is your company separate from you? Is it a legal entity?
  • What is the value of the company at the time of the exiting? How will you pay off the investors if you sell or if the company does not make it and closes? 
  • In a partnership make a plan for who retains the company, who gets bought out and how the price could be determined.

E-Books on exiting strategies

Online articles about business exit plans

Subjects: Business