Should I include exit strategy in pitch deck?

Should I include exit strategy in pitch deck?

Exit strategy is a controversial topic, but you must include it in your pitch deck. Many people in the start-up world insist that you cannot build a good company if you are constantly trying to find a way out of it.

Should a business plan have an exit strategy?

Entrepreneurs must create a business exit plan before starting a business and tweak it as the business grows and the market changes. You especially need a strong exit strategy if you plan on seeking small business financing. Investors and lenders want to know that their money is protected if your business fails.

Do you need an exit strategy?

An exit strategy gives a business owner a way to reduce or liquidate his stake in a business and, if the business is successful, make a substantial profit. If the business is not successful, an exit strategy (or “exit plan”) enables the entrepreneur to limit losses.

How do you write an exit strategy in a business plan?

Examples of Exit Plans

1. In the years before exiting your company, increase your personal salary and pay bonuses to yourself.
2. Upon retiring, sell all your shares to existing partners.
3. Liquidate all your assets at market value.
4. Go through an initial public offering (IPO)
5. Merge with another business or be acquired.

How do you plan an exit strategy for a business?

To plan an exit strategy that provides maximum value for your business, consider the six following steps:

1. Prepare your finances.
2. Consider your options.
3. Speak with your investors.
4. Choose new leadership.
5. Tell your employees.
6. Inform your customers.

How do you plan a business exit strategy?

8 Business Exit Strategy Methods

1. Pass the business along to a family member.
2. Explore a merger or get acquired.
3. Pursue an “acquihire”
4. Have existing managers buy you out.
5. Sell your stake to a partner/investor.
6. Plan an initial public offering (IPO)
7. Liquidate the business.
8. File for bankruptcy.

What is the exit strategy related to startup funding?

The exit strategy related to startup funding, is what happens when investors who had previously put money in a startup get money back, usually years later, for a lot more money than they initially spent.

What is the traditional exit strategy?

The traditional exit strategy. When investors sit for pitches from startups, they expect the startups to cover the exit strategy. That usually means talking, in the pitch and in the business plan, about how similar companies in similar markets have been able to exit via selling out to a larger company.

Is it too late to start planning your exit strategy?

Many people start businesses with the goal of seeking acquisition. But others decide later that it’s time to move on—they’d like to pull their time and money out of a particular venture. It’s never too early (or too late) to start planning your exit strategy.

Do I need a pitch deck or a business plan?

The business plan came first, then the pitch deck. All of that said, today you may not need both a pitch deck and a business plan. It depends on your business stage and what your goals are. A business plan is a thorough document that contains “the plan” itself.