Comments on: Business Exit Strategy Points To Ponder http://www.fromhomeeveryday.com/home-biz-guide-ropes/getting-started/business-exit-strategy-points-to-ponder/ Small Home Based Business Opportunity Insights Thu, 11 Mar 2010 13:00:36 +0000 http://wordpress.org/?v=2.6 By: Home Business http://www.fromhomeeveryday.com/home-biz-guide-ropes/getting-started/business-exit-strategy-points-to-ponder/#comment-88 Home Business Tue, 07 Oct 2008 09:01:58 +0000 http://www.fromhomeeveryday.com/?p=862#comment-88 I found your blog on google and read a few of your other posts. Keep up the good work. I found your blog on google and read a few of your other posts. Keep up the good work.

]]> By: Lambert - Home Busin http://www.fromhomeeveryday.com/home-biz-guide-ropes/getting-started/business-exit-strategy-points-to-ponder/#comment-80 Lambert - Home Busin Thu, 25 Sep 2008 11:01:20 +0000 http://www.fromhomeeveryday.com/?p=862#comment-80 Home based businesses are becoming really popular these days. This is the result of the internet’s growing importance. Earlier this was not the situation. Home based businesses... Home based businesses are becoming really popular these days. This is the result of the internet’s growing importance. Earlier this was not the situation. Home based businesses…

]]> By: John Chang http://www.fromhomeeveryday.com/home-biz-guide-ropes/getting-started/business-exit-strategy-points-to-ponder/#comment-28 John Chang Mon, 15 Sep 2008 17:43:48 +0000 http://www.fromhomeeveryday.com/?p=862#comment-28 Nice summary of some of the key considerations. Time & time again, from my perspective as an advisor to business owners who are ready to sell their business, i.e. execute their exit strategy, I see folks who wish they had thought about these issues sooner. If they had planned and prepared, many times they would have better achieved a higher valuation on the better end of outcomes. On the other end of the spectrum these folks who have invested their heart and soul into their businesses would have avoided paying unnecessary taxes or worse case being left with liquidation as the only real option. Case in point, Doug and Becky started a sandwich franchise years ago and were quite successful for a number of years before Doug got sick and was hospitalized for a time. To cover medical expenses and the lost sales from his recovery period, they took out loans against the business. After unsuccessfully trying to sell the business on their own, they approached me. By this time their financial situation was dire. There was little we could do, because the couple couldn't sell it for how much they needed to cover the bank loans. Subsequently, the business went under. While no one can foresee sudden illness, tying insurance and exit planning can help ensure that this contingency is covered. Nice summary of some of the key considerations. Time & time again, from my perspective as an advisor to business owners who are ready to sell their business, i.e. execute their exit strategy, I see folks who wish they had thought about these issues sooner.

If they had planned and prepared, many times they would have better achieved a higher valuation on the better end of outcomes. On the other end of the spectrum these folks who have invested their heart and soul into their businesses would have avoided paying unnecessary taxes or worse case being left with liquidation as the only real option.

Case in point, Doug and Becky started a sandwich franchise years ago and were quite successful for a number of years before Doug got sick and was hospitalized for a time. To cover medical expenses and the lost sales from his recovery period, they took out loans against the business.

After unsuccessfully trying to sell the business on their own, they approached me. By this time their financial situation was dire.

There was little we could do, because the couple couldn’t sell it for how much they needed to cover the bank loans. Subsequently, the business went under.

While no one can foresee sudden illness, tying insurance and exit planning can help ensure that this contingency is covered.

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