.6 Exit Strategy and Risk Assessment
The owner is aware of the highly risky nature of launching an entertainment-based restaurant establishment. If the venture fails, the owner's paid-in capital and expenses may not be recovered.
The venture's actual revenue will be tracked against projections on a month-to-month basis. If net profitability is not in-line with forecasts, management and operational adjustments will be made to address the issues.
If the venture is undercapitalized and requires more working capital, the owner will consider bringing on investment partners. The owner will also review the return-on-investment for personally providing more paid-in capital.
In the event that net profitability cannot be attained, the owner will take the following sequential steps to exit the venture:
1. The owner will attempt to sell the venture outright to a suitable buyer.
2. If a buyer cannot be found, the owner will liquidate all viable assets, including the establishment's liquor license.
3. Capital raised through asset liquidation will be used to reduce possible debt. All debt will be negotiated prior to settlement.
4. If debts cannot be eliminated, the owner will discuss corporate bankruptcy options with legal counsel.