Why would you? Entrepreneurs are frantically focusing on starting and growing a business and the last thing they spend time worrying about is how to get out of their business when they are done with it.
Simply put, an exit strategy is a game plan of sorts. It’s a thoughtful plan for going out of business.
Why would a business owner want a plan for going out of business?
For some profitable businesses, at least, an exit strategy can include realizing a significant profit above and beyond the revenue that comes from daily operations.
As a solo operator, wouldn’t it be important to “collect” or receive payment on the sale of your business that you had created, grew, nurtured, and monetized over a significant number of years?
Regardless of your desire to build and never sell your business, there may come a time in the future when you want or need to turn this asset into cash.
Even if you hand the business down to children or other relatives, they may not have the same desire you did to run the business. They may not want to spend their lives as you did.
Though you may not hear a lot about exit strategies, buy-outs, and the sale of businesses on the nightly news, they are quite common place in the business world – especially with smaller high growth businesses.
You see, investors put money into companies in order to realize a return on their investment of participation (ROI). Often that return isn’t realized until the company makes significant income or it is sold and the investors are paid off.
Some call this exit plan in a family business a “plan for succession.”
The succession plan answers the following questions:
1. Who will own the company when it is passed down to heirs at the retirement or death of the current owner?
2. What accounts receivable or assets and investments will accompany the business?
3. What income will be available to the business and where will it come from?
4. What amount of income is expected by the original owner and how will it be taken (monthly, yearly, a lump sum)?
5. Who will be responsible for outstanding debts and accounts payable, the original or new owners?
6. Will the new owners be expected to purchase assets of the original company?
7. What will be the disposition of intellectual property, patents, trademarks and other intangible assets?
In the corporate world, exit plans typically lead to one of the following: (a) a merger with another company, (b) a buyout by one or more of the interested company shareholders, (c) an IPO (initial public offering) where shares of stock in the company are sold to the public and then traded on the exchanges, (d) an outright sale of the company and all its assets and liabilities to another person, a company, or group, or (e) the creation of a franchise where the business is replicated in multiple locations and new franchise licensees build their own business under the corporate underbrella.
The form that the exit strategy takes will depend largely upon the worth of the company at the time of exit, the desire of the original owner as to whether the business stays in the family or not, the potential to identify and cultivate potential business buyers from either current investors or the public, and the needs of the original owner for an income stream or lump sum payments.
Thinking about all these questions and variables at the time of business creation is a sound strategy. Some businesses are specifically created with a 3 to 5 year exit strategy window. Serial entrepreneurs are very good at creating, growing, then quickly selling (flipping) a business for fast and maximum profit. That typically isn’t the case with solo online business owners; however, it is still prudent for a solo operator to have a plan or at least an idea of when he wants to retire and whether he will leave his business to his heirs or try to sell it to a new independent business person.
To your online business success,
Freelance Writing as a Career Online
Like every other freelance skill I can think of, profitable writing for the Internet is largely market driven. The consumers of the product ultimately determine what, how much, and the price they will pay for their purchase.
Since the Internet provides access to global markets, and global freelancers, some have complained that they can’t compete against authors in far away places willing to sell their time and work for pennies on the dollar (U.S.). How does an author in the U.S., for instance, make a living writing articles when the going rate online seems to be so depressed?
If no one looking for articles, for example, would pay $5/500 words the price of articles would climb. But there are freelancers that will work “for cheap” and consumers that will pay dirt cheap prices for that work thinking it’s a real bargain … so that market segment exists.
In my opinion, here’s the key for freelance writers: don’t try to compete in that bottom dollar market.
Open your mind to the possibilities of using your writing skills in other ways. Too many writers (many of them newbies) assume that article writing is the only outlet for their work. But it’s not – not by a long shot!
Here are some other ideas for you writers:
1- Use your writing skill to produce your own reports, ebooks, lead magnets, sales letters, whitepapers, how-to guides, freemiums, etc.
Focus your list building on business owners and entrepreneurs, especially targeting a niche or two where you have some current knowledge and experience. Offer the complete finished product (ideally including graphics) and include branding with the business owner’s private logo, contact info, web site link, etc. Sell the finished products “ready to go” so the owner can use it right out of the gate with possibly only very minor changes needed. Charge custom prices for your custom work.
2- Your skill could be used in selling “hot sheets.”
I’m specifically thinking about the entertainment industry, gaming industry, dating industry, etc, but hot sheets can be appropriate for many markets. Subscribe to several hot niche magazines (like People Mag, for one) then focus on “putting your own take” on what you read. Don’t copy or rehash. Be a commentator and produce a weekly or monthly “hot industry news” kind of writing in your chosen niche. Build your list of people that can’t wait to hear from you. If you had 1,000 faithful subscribers that devoured everything you published on a weekly or bi-weekly basis at $2 a pop, you would be happy, right? What if you had 10,000 addicts? Or half a dozen specific niches you covered?
3- Write your own serials, novelettes, novels, plays, short stories, magazine articles.
If you’re good, this road could lead to some major income. I think the key would be to find the genre that appeals to you and for which you could find avid readers. Think about selling “serials” where readers get caught up in wanting to know what happens next with your characters. The same type of content can be written in the non-fiction space as well. The key here is to niche down deeply into the vertical market and specialize. Become the “go to” author for that specialization where avid fans dwell, build your subscriber list, and then feed the hungry audience over and over again with paid content (maybe) giving a nice discount for “valued paying customers” on your list.
4- Do technical writing if you can learn that skill.
There is a great and on-going need for manuals, instructions, how-to booklets, product guides, etc in technical fields. Those who already “speak the language” should focus on areas of their own expertise. Even those without experience could sell their writing in less technical subjects after researching the various appropriate topics online.
5- Write to create your own products.
Every “how to” niche is ripe for product creation where you explain something that needs doing to those who want advice, hand holding, or reassurance that they’re doing something correctly. The sky’s the limit on this one. There are e-books, e-courses, tutorials, reports, PLR content, and lots of other sellable products in every niche from which you can derive a nice income.
6- Instructions to business owners.
I almost hesitate to mention this one simply because it is so powerful if you grasp the idea. The market is online solo and small business owners. The idea is to write short yet authoritative instructions about various tasks that business owners have to do but don’t know how to do, don’t want to do, don’t have time to do, or at least would like to learn how to do better, faster, and cheaper. Think business execution steps of instruction. Let’s face it … more and more everyday people are coming online with ideas to make money. Many fail, of course, but there is a constant need to have a mentor or guide that can help these entrepreneurs to understand and execute specific online business tasks that have to be done. Many of these people know nothing about running a business online. You could be the one that authors the steps to daily online business execution for them.
There are so many things you could write about: getting customers, nurturing customers, promoting services, building or maintaining a web site, doing business taxes, dealing with angry customers, keeping employees happy, outsourcing billing, setting up merchant accounts, email marketing and list building, SEO for their web site and on and on and on. But here’s where you can make your writing very valuable.
For each set of instructions you write, make it specific to one type of business (their business) and one market (whatever their niche might be); for example, “How to promote your dental service online.” Be very specific. Then with just a little bit of “tweaking” you can change your report to “How to promote your bookkeeping service online,” or “How to promote your Investing service online.” By being specific you will attract a much larger and hungrier crowd of prospects in your chosen niche because the prospects see you are writing for their exact business. And by leveraging the concept of re-purposing your content, you can create great content once and then simply modify it a little for the niche audience and have a ready-to-go new product targeted for a totally different niche.
7- Blogging, of course!
This is a very powerful and popular way to express yourself through your writing and many people have learned to do it in a way that provides an income for their effort. To be a profitable blogger you must be disciplined and willing to create valuable niche content on a very consistent basis. You must be a good writer and be willing to share your personality and expertise in your posts. In addition, you must figure out how to monetize your blog. There are many, many ways and methods to choose from in order to generate income with blogging and you will have to decide what is best for you and your audience and then master that technique. There are lots of monetization examples online.
OK, this has been a long discussion but I wanted to help you to start thinking about writing as something other than just producing articles.
The field really is wide open and you can make a substantial income if you get creative, differentiate your writing, be specific in your business model, and provide outstanding service consistently as well as high quality, engaging and compelling writing!
A simple word of caution: great writing (that people will buy) is produced by authors that have writing talent. Many don’t. Certainly, anyone can improve their writing skills over time. But if you can’t communicate at all, can’t form a proper sentence, or don’t like to write, please choose a different way to make money online. I’m serious here. The Internet is a virtual dumping ground for poor and worthless content. Don’t add to it!
To your online business success!
Six Tips for Finding Great Marketing Advice
When it comes to Internet marketing, one of the real challenges for a new entrepreneur is sorting through all the rubbish to find the wisdom.
What am I talking about?
Maybe more than any other marketplace, Internet marketing “how to” advice, both good and bad, flows pervasively around the Internet selling circles like no other niche I know. Every business owner, every business hopeful, forum and discussion group lurkers, and anyone with an opinion seems compelled to spout their wisdom about doing business online.
What’s wrong with that? There would be nothing wrong with lots of varied opinions and discussion except for this:
A great majority of the “wisdom” is not wisdom at all. People tell untrue stories, exaggerate, and outright lie to make themselves out as successful business owners because they believe that others will buy their courses, ebooks, and affiliate suggestions since they are authorities and experienced sellers. Many have the “fake it ’til you make it” mentality.
The problem with all the nonsense that is swirling around online selling “how to” is that the advice given is often counter-productive, sometimes business killing, and can even be against the law. It makes the newbies job a lot more difficult because he wastes time, effort, and money in trying to figure out what works and what doesn’t work online.
What I’m hoping with this post is to help you with some suggestions or tips on how to discover where the truth really lies – where you can count on the information being solid and doable.
Learning to sort through all the rubbish to find the gold nuggets is not an easy task but it is very important for the new marketer.
One place most newbies go to for advice is the Warrior Forum.
Most of us go to the Warrior Forum to learn about Internet marketing and how to make money online.
No doubt, you have already personally witnessed the great paradox of this forum (and really the Internet in general). There’s so much wonderful information. And there’s so much bad information. And you get to be the judge of which is which . . . what to rely on and what to discard!
It’s hard to be a good judge when you’re new to the field and you immediately get bombarded with all sorts of tantalizing offers, advice, and opinions. How do you tell the truth from the garbage? Who is serving up the good stuff and who is peddling the stuff you have to scrape off your shoes?
Here are six tips that might help you discern what is helpful and “good” compared with what is garbage and “bad.” This analysis could be used at any forum or discussion group (not just the Warrior Forum):
1. Pay attention to the source of the information. In my experience and most of the time … good information emanates from the same sources over and over again. Garbage, also, comes from the same sources. Rarely do they mix. Those with experience and longevity in _________ (add the niche) typically tend to have staying power because they have learned what works and what doesn’t. Long-standers are concerned about their reputation and will usually warn if the subject is beyond their own experience or outside their expertise. Often fly-by-nights are after a quick buck and they’re gone. Newbie advice can be either good or bad, but without specific experience a newbie is often reciting what he has heard from another (which should be considered suspect until proven otherwise).
2. Stay away from the edge of the cliff. The more you study Internet marketing, the easier it is to tell which strategies and tools push the envelope of ethics, good judgement, and accepted practices. Shady tactics, gaming the system, black hat methods and software, etc, sit at the edge of the spectrum. Truth, honesty, ethical methods and white hat are found at the center of IM. The closer you venture toward the edge, the more likely it is that you’ll do yourself harm. Your reputation in online selling can make or break you!
3. “Paid for” has no edge over “freely given” advice. Sometimes we tend to value things we’ve purchased over those that were given to us at no cost. To assume that value in IM advice can only come from purchases would be wrong. Remember suggestion #1 and find the source of wisdom, then listen to what that person says, freely given or paid.
4. Let the words “easy,” “instant,” “auto-pilot,” “push button,” “dominate,” “no work,” “30 minutes a day,” “opportunity of a lifetime,” “the only ______ you’ll ever need,” and “six figure income” be red flags that need to be analyzed further. Success in IM takes work, is rarely easy, and profits generally build over time (often slowly at first). People, ads, and offerings that tout instant success, fast wealth, and nor or little actual work should always be suspect and are most often sales pitch fodder. Marketers that sell the “no work” dream are like dirty diapers, they’re full of #*+@. I know it’s a warn out cliche, but “if it’s too good to be true” … (you know the rest).
5. Marketing is marketing. Business is business. The Internet is a delivery tool. Long-standing, time-honored, proven business tactics work for both physical and digital based businesses. The net has helped to create huge business fortunes … but it’s use has also become one of the biggest time-wasters in history for the entrepreneurs who won’t take action or who implement garbage tactics and practices. Some business owners spend all day sending and reading emails, checking out social media, and trolling the forums. These people aren’t doing what it takes to create and run profitable businesses – they are wasting their time in activities that keep them busy but unproductive.
6. Good information is also timely information. Be aware that change comes at an ever rapidly increasing pace. Products don’t last forever – they become outdated, stale, and sometimes obsolete over time. Effectiveness, utility, and therefore top quality products and advice need to be up-to-date, tested, and modified in order to remain useful and cutting edge.
And just for fun…
7. Expert, n. : an ordinary fellow a safe distance from home. Sad but true.
To your online business success,
Should I Quit My Job?
One of my subscribers and I were conversing (at her request) about online business and she seemed to be very frustrated about her ability to chart a course for her future involvement in full time Internet business.
Her question was simple and one I’ve heard many times: “I don’t know if I should ease into my business part-time or quit my current job and jump in with both feet. What do you think?”
This can be one of the most perplexing and difficult decisions you have to make as you decide to create a profitable business.
Most people are anxious to get going down their own chosen path … but are also realistic about the uncertain future because they don’t want to negatively impact their families with a poor decision that leaves them with no income source.
So, if you are in this same position, here are some questions to ask yourself that may help you to come up with the right decision for YOU.
Obviously, there is no “one best way” to enter self-employment. The choice you make on how to do it will most likely depend upon your current state of affairs: your employment situation, your tolerance for risk, your family size and makeup, and your ability to take care of your financial obligations with or without a continued regular paycheck from your current job.
There is some wisdom in not rushing things at the outset. Quitting your full time job and putting your loved ones at risk can be a very scary proposition. If you lose your medical and life insurance coverage, will you be able to afford these new out-of-pocket costs? How long will you be able to last if your daily and monthly living expenses come from your savings account?
Who will make the house payment, the car payment, and buy groceries until your new business begins paying off? Will your spouse have to go back to work to help support the family? Or will your current “other” income be enough for you to live on until the business gets going?
What if you get into the daily operation of your business and find that you really aren’t happy with what you’re doing? Or that you can’t generate the amount of revenue you need in order to justify staying in business? If your new business was forced to close its doors, would you try to find another job in your field or search out another new business idea?
On the positive side, full time business means you will have more time to spend on your operation, it should reach profitability sooner, and you will grow your clientele faster. Also, you will be available during the day to talk to customers and supplies. Sometimes too, part-time owner operated businesses are not taken seriously by lenders and distributors.
The cons of beginning a business as a part-time project include not having sufficient time to really work the business as it should be done, the drudgery of coming home from a hard day’s work only to be forced to put in more sleepless hours on top of it, unnecessarily lengthening the time until the business becomes profitable, and not being able to deal with important communications during the day time business hours. Stress and burnout also often become major issues, since family and leisure time are often sacrificed on behalf of the new part-time business needs.
You will have to make the decision on how best to get started by reviewing your own circumstances, the projected time it will take before income will flow from the business, and how much savings or reserve you have at your disposal to keep you and your family solvent.
Before you decide, here’s a tip: involve your spouse and family members in your decision from the outset. They need to understand the commitment both you and they will have to make, and the resulting sacrifices that may result. They will be in a better position to be supportive and understanding of your time constraints if they buy into the decision.
Just one other important question: if you begin on a part-time basis, how do you know when it’s the right time to quit your job and go full time?
I’m glad you asked! Here’s my feeling. Wait until the pace of your new business causes you to lose sleep many nights in a row. If you have enough demand that you can’t fill all the orders without losing a lot of sleep, you will probably be at a point where your business will support you as it continues to grow.
Ideally, you should be making as much (or more) in your new business as you did in your prior job. When you can cover your old salary (or hourly wages) for six months in a row, you should be fine to move to full time Internet business. By placing a six-month of making “X” income as a criteria, you will pretty much be assured that your income is steady enough to task away the risk of quitting your old job.
One of the reasons why I am so high on the solo Internet business path is that the costs to entry are very low (hence the risk is low), the demand and time to fill it can grow together, and you will be able to dictate the point at which you transition from part-time to full. The idea being that you don’t have to put your spouse and family in a high risk situation so that you can begin a new business career for yourself.
To your online business success,
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