This planning should be an integral part of determining the risk associated with the investment, trade or business venture. If cash flow draws down to a point where business operations are no longer sustainable and an external capital infusion is no longer feasible to maintain operations, then a planned termination of operations and a liquidation of all assets are sometimes the best options to limit any further losses. Most venture capitalists usually insist that a carefully planned exit strategy is included in a business plan before committing any capital. Business people may also choose to exit if a very lucrative offer is tendered by another party for the business.
The statistics are grim. An even more microscopic group, just 0. In other words, most businesses start small and stay there.
This paper extends international business theory by providing insights into contextual boundaries of the dominant strategic adaptation model, based on assumptions of low power distance and a bottom-up management style. Jun 27, · In this article, we cover the three levels of business strategy and how to create a synergistic plan that can enable you to grow quickly. Learn why your strategy . A business plan is all conceptual until you start filling in the numbers and terms. The sections about your marketing plan and strategy are interesting to read, but they don't mean a thing if you.
But if that's not good enough for you—or exit strategy for business plan examples you recognize that staying small doesn't necessarily guarantee your business's survival— there are examples of companies out there that have successfully made the transition from start-up to small business to fully-thriving large business.
That's the premise behind the search Keith McFarland, an entrepreneur and former Inc. So I studied the companies who had done it to learn their lessons. Developing a Growth Strategy: Intensive Growth Part of getting from A to B, then, is to put together a growth strategy that, McFarland says, "brings you the most results from the least amount of risk and effort.
The bottom line for small businesses, especially start-ups, is to focus on those strategies that are at the lowest rungs of the ladder and then gradually move your way up as needed. As you go about developing your growth strategy, you should first consider the lower rungs of what are known as Intensive Growth Strategies.
Each new rung brings more opportunities for fast growth, but also more risk. The least risky growth strategy for any business is to simply sell more of its current product to its current customers—a strategy perfected by large consumer goods companies, says McFarland.
Think of how you might buy a six-pack of beverages, then a pack, and then a case. Finding new ways for your customers to use your product—like turning baking soda into a deodorizer for your refrigerator—is another form of market penetration.
The next rung up the ladder is to devise a way to sell more of your current product to an adjacent market—offering your product or service to customers in another city or state, for example. McFarland points out that many of the great fast-growing companies of the past few decades relied on Market Development as their main growth strategy.
For example, Express Personnel now called Express Employment Professionalsa staffing business that began in Oklahoma City quickly opened offices around the country via a franchising model.
Eventually, the company offered employment staffing services in some different locations, and the company became the fifth-largest staffing business in the U. This growth strategy involves pursuing customers in a different way such as, for example, selling your products online.
When Apple added its retail division, it was also adopting an Alternative Channel strategy. Using the Internet as a means for your customers to access your products or services in a new way, such as by adopting a rental model or software as a service, is another Alternative Channel strategy.
A classic strategy, it involves developing new products to sell to your existing customers as well as to new ones. If you have a choice, you would ideally like to sell your new products to existing customers. That's because selling products to your existing customers is far less risky than "having to learn a new product and market at the same time," McFarland says.
New Products for New Customers. Sometimes, market conditions dictate that you must create new products for new customers, as Polaristhe recreational vehicle manufacturer in Minneapolis found out.
For years, the company produced only snowmobiles. Then, after several mild winters, the company was in dire straits. Fortunately, it developed a wildly-successful series of four-wheel all-terrain vehicles, opening up an entirely new market. Similarly, Apple pulled off this strategy when it introduced the iPod.
What made the iPod such a breakthrough product was that it could be sold alone, independent of an Apple computer, but, at the same time, it also helped expose more new customers to the computers Apple offered.Use a Strategic Plan Template.
An effective small business strategy will help build your business. Use strategic planning samples or a strategic plan template (for example, a strategic planning SWOT or five forces model analysis) to streamline your strategic process and focus on getting the results you want for your business..
Search This Site. There are only a few exit strategy options for most business owners. We review examples, which businesses they work for, and outline the pros and cons. Exit Strategies for Small Business Owners.
Quick links. Real examples of small business exit strategies.
The owner of a residential construction firm (with over contractors) had a. Writing your business plan. From Innovation, Science and Economic Development Canada. Although business plans vary in terms of length and scope, all successful business . The stodgy business plan--that multipage printed document that entrepreneurs used to hand out at meetings with venture capitalists--has gone the way of the typewriter and Rolodex.
Exit Strategy: The Exact Tactics to Transition from Where You Have to Be to Where You Want to Be Kindle Edition. The "Original Exit and Succession Planning Coach, Mentor" CEO and Founder of the CHRISTMAN Group, former CEO and Co-Founder of the Exit Planning Institute, Peter Christman is an experienced entrepreneur, corporate executive, coach, and mentor and investment banker.