Exit Strategy For A Business

When you start a business, have you thought about an exit strategy from your business? Many people start a business and was trapped in their lifetime effort. Remember, you start an effort to gain financial freedom and time freedom is not merely financial freedom.

Before starting any business is always thinking in advance what your exit strategy. Are you going to sell your business? Are you going to take your business to the public? or Are you going franchised your business?

This process is called backward engineering, where you start first at the exit strategies. This is where it really the success key of the millionaire in any country. You build an asset that has value and then sell the asset for capital gains tenfold.

For example, if you intend to sell your business after you get up for 5 years. And your business for 5 years resulted in a net profit of $ 10 million per month. So if you multiply a year in net profit from your business could reach 120 million per year.

Then if you intend to sell your business. A common formula used in the whole world is 10x formula. Ie net profit a year in multiply 10 x is your company’s selling price.

If you intend to sell it then you will get $ 1.2 billion that you can use to open another business again.

Put the $ 1.2 billion you can open another 10 businesses, with each initial capital is $ 120 million. And later on your business, 10 of each produce yield the same net profit 10 million per month or 120 million per year.

If you decide to sell your business now, then you will get $ 1.2 billion X 10 = $12 billion! Fantastic…You see the profit?