Almost everyone who decides to go into the home business style of earning an income, often forgets to take into consideration the strategies that should be in place should the individual decides to call it quits and close the business.
Though this would seem unimportant and even not needed at the time, it does have an important impact on the individual and the business revenue earned through the course of the business should this end be executed.
Therefore it is advised that some consideration should be given to this, and all the necessary mechanisms be put in place at the very beginning of the business plan to ensure a smooth transition process prevails.
When It’s Time To Go
One way of developing a practical exit strategy from a very profitable ongoing business endeavor without causing the “boat to rock”, is to reward one’s self with huge amount of “goodies” in the form of bonuses, pay checks, special shares or dividends and the likes, regardless of the company’s current performance levels.
In doing so, the company will be able to deplete its current healthy revenue reserves and direct them into the coffers of the owner, thus creating a viable and quick exit when the time is right.
Another form often utilized and is not really messy or complicated is the liquidation process. This style is used, when the home business owner has simply decided that enough is enough, and wants to close the business without any fuss.
In this scenario the individual would just literally close the doors on the business and after paying off any creditors and other shareholders, putting up the equipment for sale if any, whatever balance left would be considered rightly his or hers.
There would be no or minimal negotiations involved and certainly no lengthy time consuming processes to adhere to. There would also be no need for legalities such as transfer of control or redistribution of shares if the business was solely owned by one individual.