Entrepreneurs- Got A Great Business And Want To Capitalize As Quickly As Possible? Exit Strategies

Many business owners either with a new or established business are seeking to capitalize on their hard work and move onto other things. Some entrepreneurs are seeking capital from angel investors and need to provide suitable exit strategies within their business plans.

Please remember that venture capitalists are seeking high returns in exchange for their high risk investment. Many of them expect your company to go public within a short time frame.

Angel investors are not so concerned with you going public, but are still looking for a quick and high rate of return on their investment. They are not as sophisticated as venture capitalists or institutional investors and are more likely to wish to be in your business.

Here are a few ideas for you.

If you have no investors and merely wish to exit yourself from your business. Investors do not accept these exit strategies as being very professional.

Sell: The most obvious option if you have a viable business.

Asset Strip: You can pay yourself a huge salary and sell off all viable components of the business. It could be that this is a more profitable option than selling your business as a going concern.

Minimize the Business: If time is your problem then just restrict your trading hours and/or product line. Outsourcing some areas of the business will give you more time.

Liquidation: Cease trading, pay off your debts and sell your assets. Close the doors and walk away with your memories and stories.

Give your Business Away: You can remove yourself from the business and leave your business to your heirs. Take legal and financial advice first though please.

Here are a few more conventional exit strategies that an investor will be interested in hearing about.

Consultancy: You could let your management team take over the running of the business and take on a consultancy or executive role. This can only be done if your management team are capable of running and improving your business. This option is quite often take if you personally have reached the pinnacle of your ability, or want to spend more time away from the business. This option allows for a more experienced management team to run the business whilst you retain an income and influence on the business. An example of this would be Anita Rodderick of Bodyshop – who took the opportunity to follow her love of conservation whilst still retaining some influence over the company that she founded.

Merger or Acquisition: This is a particularly attractive option when you are a small company with a strong presence in a niche market. There are many small company owners that have become very rich by being bought out by the likes of Google or Amazon. These large companies do this as they want the products you have and buying a company is cheaper than the research and marketing necessary to bring these products to market. The merging or acquiring company is paying for your assets, patents, copyrights, good will, market share and client base. In a merger you can arrange for a nice consultancy post for yourself in exchange for giving up your chairmanship. Not quite giving up the business but not a bad lifestyle.

Franchise: If you have a business that can be duplicated in many different regions why not consider setting your business up as a franchise. Similarly of you have a business with numerous outlets why not franchise some of these? Alternatively why not turn your head office location into a franchise headquarters and then sell off franchises? This option does take some time and money but can drastically decrease the time that you have to spend with your business, whilst still providing a good income.

IPO: The holy grail of business and one that you read about when people become “over night millionaires”. About as likely as becoming an overnight millionaire by winning the lottery. Unfortunately rather than handing over your Dollar/Pound/Euro for a ticket – you are going to spend hundreds of thousands on lawyers, analysts, PR and bankers!

Which ever option you choose – choose carefully and good luck with your new found wealth and leisure.

Types Of Business Phone Systems

Business phone systems are a boon to modern businesses, especially small businesses. They reduce costs make it easier to handle calls, and are easy to install. With falling prices, business phone systems have come within reach of most small businesses. Investing in a good business phone system ensures greater productivity and efficiency, and helps manage customer relationships and relationships with vendors, as well as people working within the organization.

Depending on the features and technology used, business phone systems are of three kinds, KSU less, Key Systems and Private Branch Exchange (PBX). A fourth type is a Hybrid of two systems. This article focuses on the different types of business phone systems and their uses.

KSU less Business Phone System:

KSU Less Business Phone systems are meant for companies that employ less than 10 people. However, this supposition is based simply on the number of extensions – KSU less systems have less than 10 extensions. However, even if you have 10 employees, your business may need a business phone system with more advanced features that are available only in PBX systems.

KSU Less systems are less expensive than PBX or Key systems, which explain its popularity. However, you get basic features that are needed for a proper business phone system. Here are some advantages of using KSU Less systems.

1) Price: When it comes to cost effectiveness, KSU Less phones emerge clear winner over PBX and Key systems.

2) Installation: KSU fewer phones are easy to install.

3) Unplugging: If you need to move your business to another location, you can unplug KSU less systems very easily.

PBX Business Phone Systems:

PBX Systems have more than 40 extensions; and are generally used in organizations with 40 or less employees. In recent years, the prices of PBX systems have come down considerably, allowing modest sized or small businesses to acquire them. In addition, the systems have become more compact, and can be accommodated on a desk.

PBX systems have many features not available in KSU Less phones, which is why expanding businesses switch to this system.

Key System:

Key systems have anywhere between 5 and 40 extensions. A central control box helps monitor the system. They are not as flexible as PBX systems, but have certain useful features that make it useful for some businesses.

PBX and Key System Hybrids:

Many PBX systems now incorporate features of key systems, and vice versa. Many systems can function as either PBX or Key system once particular software is installed.

All four types of business phone systems have their own advantages and disadvantages. You need to have a very clear idea of your business needs before you invest in a particular system. If you need to know more about the latest business phone systems available in the market, and which one is the best for your business, you can consult a small business expert.

Understanding Legal Issues Associated With Small Businesses

A sound knowledge of legal issues associated with small businesses is essential for the smooth operation of the any kind of small business. However, compliance of all these rules and regulations can be troublesome for the small businesses. Knowing this problem of the small businesses, and to provide help in this regard, the SBA has developed a website along with multiple federal agencies. Name URL of this website is BusinessLaw.gov. This website is an easy online resource for the small businesses to get the information about the legal issues associated with small businesses.

Legal Issues Affect Every Aspect of the Business:

When you plan any type of strategy for the growth and better management of your business, legal issues associated with small business affects almost all the aspects related with the business. Website is capable of providing information on all kinds of aspects right from basic issues up to highly specialized matters. You can get help on basic issues such as how to choose the structure of new business or how to hire a lawyer. On the other hand, you can also get information on specific issues such as exporting and e-commerce. Any information that affects the small business whether it is related with federal, local or state regulations is available on this site. It makes your job of finding the zoning codes easier and makes possible complaining to the office of the ombudsman.

Unawareness Can Lead to the Failure:

Not being aware about the legal issues associated with small business is the reason of failure of several small businesses. Not seeking the legal help at the development stage of any new small business can be fatal for the survival of the business. To run your business smoothly you should try to learn as much as possible about the legal issues associated with small businesses.

How to Choose the Structure:

The structure of the company is the first question that comes to the mind of the person who is going to start a new business. You should not take this decision in haste because the implications can be far reaching. It will be better to ask an expert attorney and get the advice on what type of business structure is most suitable to you. Before taking this decision, make up your mind about the nature and size of your business in future. Other factors to consider are the level of control you want on the business, level of structure you are comfortable to deal with, implications of different structure on taxation, vulnerability to lawsuits and profit you expect from the new business.

When you select legal counsel for dealing with the legal issues associated with small businesses, make sure that the staff attorneys of the firm you are going to hire have received their degrees from the accredited institutions. The firm should be equipped with enough knowledge and experience on how to solve the legal problems of the small businesses particularly.