IN REVIEW SUMMART
This chapter of the textbook deals with exit strategies that the entrepreneur will need to consider. These decisions can involve finding a successor to the venture because of bankruptcy. All of these likely scenarios are real and common among small businesses, thus, to be prepared the entrepreneur should understand each of these issues and be prepared with an exit plan before it is too late. One of the venture-ending decisions that an entrepreneur may face is succession of the business. If the business is family owned, the entrepreneur would likely seek a family member to succeed other option options, if no family member is available or interested, include transferring some or all of the business to an employee or outsider or hiring an external an external person to manage the business. Direct sale of the business. Direct sale of the business, employee stocks option plans, and management buyouts are alternatives for the entrepreneur in selling the venture management buyouts are alternatives for the entrepreneur in selling the venture, there are all exit strategy options for the entrepreneur and need to be planned for early so that crises are minimized.
Even though the intent of all entrepreneur is to establish a business for a long time, many problems can cause these plans to fail. Since about one-half of all new ventures tail in their first four years of business, it a important for the entrepreneur to understand the options for eithers ending or salvaging a venture