Smart Startup – Smart Up

Chapter 6: Exit Strategy

If you are bothered to speculate on what will happen,

then you should not go into business.

This is when you must realize the importance of exit strategies

and that you will need them to be most effective.

If you’re starting a company

to sell the products/services you create,

it’s time to think about how to “package” your company as a product.

And now,

you have to prepare for the future:

One day you will no longer operate with your company,

what will it look like

and what do you want it to be after you leave the company?

There is a very good saying of a successful businessman:

“End at the beginning”. In other words,

whatever you do,

you must have a vision of the end.

That’s an important trait that makes a leader.

If you start a company,

you are a leader anyway,

and the most important characteristic

of a leader is knowing where you are going

and where you are going.

Want a steady stream of money after building a successful company?

Want to have a large sum of money after building a successful company?

Want to sell your company to someone?

You want to build a business at the request of big companies

to be acquired and receive a large amount of money,

then travel the world?

Or do you want to put your company on the stock exchange?

…

All of the above needs to be shaped

even before you start the company.

Because the most important thing is:

You have to know the end point

before you start doing anything.

That is the most prominent characteristic of successful people.

You are the creator of the business,

so you are the one who has to follow the business

for a certain period of time.

But there is one thing you need to be concerned about:

important decisions must be based on the assumption

that one day you will exit the company?

That’s why it’s important to have a wise exit strategy right from the start.

“Leaving the company” means

that you are no longer involved in the company’s activities

and the company still provides you

with money and property benefits.

That is a wise exit strategy.

There is a surprising truth

when you have to answer the opposite question:

Is it possible to stay with your company for life,

when in reality a company will not bring in a large enough wealth

as you would like?

want or what?

Unfortunately,

this is not uncommon.

That is why an entrepreneur often owns many companies at the same time.

Obviously, you will have to build a successful company

and then leave the effective company

before you can launch a second company,

a third company…

This is the wise choice:

Close package the company you build as a product

and then “leave the company”,

but the company is still a “money printer”

that regularly brings you great income later.

The exit strategy is essentially the spirit of “start working from the end”.

This work ethic is so important,

so important

that it becomes a philosophy of life for leaders.

There is an interesting story about the life

and career of Steve Jobs,

the founder and founder of Apple

– the world’s largest technology company today.

In his youth,

at the age of 17,

he read a story that changed his life.

The story reads:

Every morning,

you stand in front of the mirror and say to yourself:

“If today were the last day of my life,

would I do what I am doing again?

One day, you’ll be right…” Steve Jobs shared:

“Since I was 17,

I’ve stood in front of the mirror every day and said to myself,

‘If today were the last day of my life,

Am I doing what I’m doing?’

If the answer is no for days,

I know I have to change…

And the truth is,

I’ve never regretted what I’ve done.”

The famous quote that Steve Jobs left for posterity is:

“If today were the last day of your life,

would you continue what you used to do?”

And throughout this entire chapter of the book,

there’s also a question for you:

“If today were the last day of your life,

would you continue to build the company you are starting to build?”

If the answer is yes,

then you should start;

If the answer is no,

then you need to reconsider.

Now there’s an even more convoluted question:

“How are you going to ‘finish’ the company you built?

What happens when you no longer work at the company you built?”

If you can’t answer this question,

there is a very good quote from Steve Jobs for you,

which is:

“Stay hungry, stay foolish”,

or to put it in Richard Branson’s style:

“Although Forget it! Do it!”

Do it and eventually there will be a way.

However, if you want to learn the ultimate solution of “exit strategy”

then the following could be the answer.

There are three exit strategies adopted

by most of the successful entrepreneurs you can

apply it yourself.

In other words,

the following three common exits will give you

the final picture you’ll have to

when the business is complete.

You want to have a decent

and regular amount of money

after leaving the “marketplace”?

You want to work

with other organizations/individuals

to build a stronger company?

It all depends on how to exit your company.

If you want to build a growing company

and you are a part of it,

then selling a part of the company is the strategy for you.

If you want to “end” the fatigue of running a business,

exiting the company

by declaring bankruptcy is the strategy for you.

After that,

go back to the professional career path.

If you want the big bucks to be free

and do the things you love,

then selling the entire company

once it’s done is the exit strategy for you.

We now discuss each exit strategy in detail.

First exit strategy:

Sell part of the company

You can sell the company to organizations/individuals who want

to buy back in the market.

Selling part of a company can be one of the most ingenious exit strategies.

When selling a part of the company,

you have the right to choose the organization/individual

to acquire the company.

How do you choose the right organization/individual

to acquire your company?

They can buy your company to expand the market,

find new markets from the company,

launch new products to the company’s customers,

or you simply sell a part of the company

to find people to work

with going the long way with abilities you don’t have;

you exit the company in functions,

departments are not your forte.

One of the important benefits of selling a part of a company

It is that the acquiring organization/individual

It will develop more customers with old or new products,

contribute to expanding the market,

and can get your product/service sold in the market

of the organization/individual

that bought your company.

At the same time,

you will probably have a better leadership team to run,

taking the business to the next level.

But selling a part of the company also has its downside.

If there is no unity and harmony between you

and the organization/individual that buys a part of your company,

the company strategy will change:

the company will no longer follow your original direction.

The team of the acquiring organization/individual

It can destroy all the systems,

processes,

and teams that you have built

and end your career.

If you want to put your company on the stock exchange,

how should you do it? IPO solution

(abbreviated in English “initial public offering”:

Issuing shares to the public for the first time)

is also an option for you.

The point to note in this “exit” strategy is

to find for your business a suitable organization/individual

in terms of vision,

mission and strategy to help your business grow.

You have the right to choose.

Advantage:

If your business has a unique difference,

you will find organizations/individuals to accompany

and help your business grow dramatically;

You get a large sum of money

after selling a part of the company.

Defect:

Selling a part of a company often leads to turmoil,

where cultural values and old

and new systems clash;

Selling a part of the company

but not having a clear agreement

from the beginning will make you uncomfortable

throughout the time you run the business together.

Second exit strategy:

Bankruptcy

Someone will ask the question:

Is this also a strategy of “exiting” the company?

Yes, this is also a way that doesn’t seem very good

and probably very few people want to use it.

However, you should still take the time to review it.

Even as a business owner,

you still have the power to choose how you live your life.

If you say enough then it is enough.

If you declare the company bankrupt,

of course any money from the company’s assets

It must be used to repay the debt.

The rest is divided among the shareholders

(if you have other shareholders)

and make sure they deserve their share

for what they contribute

to the company during the partnership.

The point to note in this “exit the company” strategy

It is to go bankrupt wisely

and limit the risk to the lowest level.

Please find out the issues involved

when you decide to… bankruptcy.

Advantage:

Easy;

No more worrying about anything related to the company;

Spend more time in your personal life.

Defect:

Do you want to set up a company just for liquidation?

No. of course.

Because the company is like your brainchild.

You put all your heart,

time and energy into building it.

This strategy will only cost you valuable time and energy;

You no longer gain the trust of shareholders,

customers, suppliers and employees.

Later, when you set up another business,

they will be shy

and have a certain reluctance to work with you.

Third company exit strategy:

Sell the entire company usually

your company is sold to an organization/individual outside the company.

However, there are times

when the buyer is not from outside.

You can also sell your business

to an existing employee or manager.

There are three states in this “escape” strategy:

– First: Your company is “doing well”

and there are often organizations/individuals

who are intending to buy your entire company.

You will have two choices:

one is to keep the company

and run it as you like;

the second is to sell the company back

to that organization/individual to run it completely

and you have adequate money

and time to set up another business

with a different field/product that you love.

– Second: If you feel “enough”,

it is time to take a break

and spend time with yourself and your family,

then this exit strategy is a strategy worth thinking about.

When you sell the entire company,

you will have some money and time to do the things

you love instead of being absorbed in “fighting”.

– Third: Your company does not develop

as you want for a number of reasons

from the way you manage your financial resources…

But there are organizations/individuals

who see the growth potential of your company.

They will recommend repurchase.

If you want your “brainchild” to be “raised”

by a better person,

it will still survive but only change owners,

then this is the “exit” strategy

that you should think about

because your employees,

customers,

shareholders and founders… don’t bring your business

to ruin because of your selfishness.

The point to note for this exit strategy is:

– If you are in control,

look for an organization/individual

that can pay you the highest price

when selling the entire company

and they are committed to following your development direction (if possible).

– If you are in a “position” to sell,

then send the acquiring organization/individual a detailed

and complete description of your business

(products, customers, suppliers, specials, etc.) employee score,

operating system…)

so that they can run your growing business on your behalf.

Think: Your business still exists.

Advantage:

You will have a sum of money from the sale of the company;

You have more free time;

Your business – your brainchild still exists in the market

(if the buyer of your business does well).

Defect:

Your business will no longer be run according to your wishes;

Your employees, customers and suppliers will have

to adapt to a new system-culture.