Jan 27, 2022: Art of working with Investors and Exit Strategy
While working with Investors, as an entrepreneur, it’s your responsibility to strengthen ties with investors to position your current and future ventures for success.
After closing the deal with investors – The Investors may offer incredible business acumen and resources.
How to build relationship with investors :
- Try to recognize their value beyond finances and listen to their underlying concerns.
- Share your passion and convictions.
- Set clear explanations at the beginning.
- Communicate frequently.
- Be authentic and respectful.
What is an exit Strategy ?
An exit strategy is a contingency plan that is executed by an investor, venture capitalist, or business owner to terminate a situation in a way that will maximize benefit and minimize damage.
Types of exit strategy
- Merge and acquisition exit strategy : It’s a strong exit strategy for any company with their business for sale.
- Selling your stake to a partner or investor : You are allowed to sell your stake to a partner or venture capital investor while the business runs as usual.
- Management and employee buyouts (MBO) : It’s when those already working within the business takeover into more senior roles to fill the gap .
- Initial public offering (IPO) : During an IPO exit, you take your business to the public and sell shares as stock.
- Liquidation : This is one of the common exit strategy for businesses, where a business is closed down and all assets sold off.
- Bankruptcy : It will result in all the assets being seized and will impact on your credit, but it will also relieve you of financial debts.