Exit Strategy – Do you Have One?
By Alan on Apr 8, 2008 in Business Chat, Domain Sales, General Thoughts, Selling a Domain, Selling a Website | 4 Comments
At some point every business owner (not just domainers) look to sell or “exit” the business. In this industry it seems many people are building and building portfolios so someday they will “exit” by selling the entire portfolio to a buyer.
Is this really a valid exit strategy?
It certainly sounds great but it’s also the elusive dream for many domain owners as portfolio buyers are few and far between – at least those that want to pay a fair price.
Keep your head out of the clouds (visit every now and then) and spend time developing a real exit strategy – one which is deeper than simply finding the right buyer. Remember, if you can’t find someone to pay $100,000 for your portfolio today what makes you think you have a better chance of selling a bigger portfolio for $2,000,000 (using the same logic) down the road. Sure, it’s possible but money gets harder to find the higher you go.
Develop an exit plan that contains multiple exit points. Build a smaller portfolio with some great names, have some developed sites, create a brand within a specific sector. So many options but each one will be an exit point in your overall exit plan.
All kinds of exit strategies exist but the question is – do you have one?
Damir | Apr 8, 2008 | Reply
Yes you are spot on – there needs to be an exit plan.
I am in the final stages of the creations of MY exit plan.
Great post
David | Apr 9, 2008 | Reply
Exit strategies are highly overrated. Having been the owner and seller of a couple of businesses, I now regret selling those cash cows.
My businesses are now being built with sustainability in mind. Present and future income that will benefit my spouse and I into and through retirement and my children after I’m long gone.
Russ Chafe | Apr 11, 2008 | Reply
It is true, buyers are sometimes hard to find and if you have a “cash Cow” selling it may not be wise but never forget, everything is for sale for the right price, so always be prospecting for the right buyer.
**NF** Cash Cows can always run out of milk – an exit strategy is a must behind any business plan. One does not have to exit but one must be prepared when exit is neccessary
Fahad | Jul 28, 2010 | Reply
Thank you for this topic
I want to say two things:
1). Any business should be there stop loss point.
2). Sometimes Soon loss better than Profit after a long time.