Hello, everybody! I think every CEO or owner at some stage of his life asks himself the question, “How to get out of business?” Today I want to tell you about methods and means of getting out of your business and the most spread reasons for it.
I find the owner’s energy is the main reason. I reckon that the owner is the core of the company that’s its heart. When the owner has passion, fire in his eyes to do something, to create, to develop the company this energy transfers and gives the inspiration to his or her employees. But when you have no desire and energy to work or just take the company’s income into your wallet in all these cases your company is already sentenced to death.
The second most spread reason is when the owner wants a retirement and is ready to quit. And the third one is the debts and problems of the company.
Now let’s move to the ways how you can get out of your business.
1. Sell or transfer your business to a family member.
If you don’t want to run your business and just want to have some rest but don’t want to lose it entirely you may transfer it to your family member who has the will and is able to run the business. It must be a person who is interested in the development and growth of the business and has skills to run it properly. Besides, you may just sell it to a member of the family, but keep in mind that you won’t have any impact on that anymore.
2. Sell it to a trusted employee.
As far as I know, in some companies, there is such a thing as selling the company to a trusted employee who can be interested in it. It is suitable for you in case if you want to leave and you worry about your company and its future. That’s a brilliant opportunity when there is nobody from the family who can take the reins of power into his or her hands.
3. Lease it to own.
A rather good variant is leasing. In this case, you need so-called a lease to own arrangement but to be honest this is one of the most unique ways to somebody truly interested in it. Yes, there is a catch but I think all know what leasing is about.
4. Gift it.
Another option for you is to gift your business. Actually, you can gift it to whoever you want but this time you should be ready that you will get no income.
5. Sell it to an outside third party.
The most widely spread way is selling your business to a third party. I find it the best option for you as an owner when you’ve decided to sell. In this option, you can negotiate, show the worthiness of the business and sell it for the highest purchase price. You will be able to get more cash and without any risks. Yes, in this case, you will obtain the biggest possible amount of money but remember that the destiny of your former employees will be under threat and this business will lose its culture and uniqueness after all.
6. Sell it to co-owners.
When you are not the only owner you can sell your part of the business to a co-owner. For sure, you know this person quite well. You are well aware of its skills and knowledge and you can be sure that your business will be alright in those hands.
7. Liquidate it.
There are also some radical ways when you want to get out. One of them is liquidation. In this event, everything that an owner has built and developed will be destroyed. It deals with some damage to customers, to employees but this way is rather suitable when there is no alternative exists. But here the advantages can be also found like money and the fast end of the whole process.
8. Close the business.
Another radical way is to close your business. When this is not valuable for you anymore, you don’t see any interest in it or you have debts because of it and just want to leave, maybe, this is your variant. You can just close everything and walk away.
As you see, there are lots of ways to get out of the business but I reckon and suggest you take the note and a pencil, sit down and write your vision of the business you have. If you don’t have any and you can’t find any exit or solution from the situation you have or don’t find any value in your business, yes, in this case, it would be probably better for you to get out.
Many thanks for reading this article! If you are interested, you may find this article interesting too: my 5 biggest mistakes as a CEO in the first 2 years.
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Thanks, everyone and have a nice day!