The Harvest Plan
Entrepreneurs need to think of their companies as part of an ongoing career path. So says Jerome Katz, professor of management at St. Louis University. He has been studying the career paths of entrepreneurs and finds that there are four major types:
Growth entrepreneurs. These are entrepreneurs who measure their success by the size of their company. They tend not to have an exit plan because they, re always striving for bigger, better, faster.
Habitual entrepreneurs. These are people who love to state businesses and may start and run several at once. They are probably even less likely to have an exit plan because there are always new opportunities out there.
Harvest entrepreneurs. These entrepreneurs start and build a venture for the
pur - pose of selling it. Some of these owners will start,build. And harvest many com – panies during a career.
Spiral, or helical, entrepreneurs. Women entrepreneurs often fall into this cate – gory. These entrepreneurs are driven by what is going on in their personal lives, so their entrepreneurial tendencies emerge in spurts. At time they may appear oblivious to the business as they deal with family issues.
SELLING THE BUSINESS
Selling the business outright to another company or to an individual may be the goal if an entrepreneur is ready is ready to move on to something else and wants to be finan – cially and mentally free to do so. Unfortunately, however, selling a business is a life – changing event because for several years, the entrepreneur has probably devoted the majority of his or her time and attention to growing the business, and it played an important role in structuring the entrepreneur's life. Although the market may be good for selling the particular type of business an entrepreneur owns, he or she may not be ready to “retire” or may not have identified what to do next. Conse quently, after the business has been sold, its owner may experience a sense of loss, much like what accompanies the death of a loved one;without preparation, emotional stress could be the consequence. Therefore, planning for this enormous change will be vital.
CASHING OUT BUT STAYING IN
Sometimes entrepreneurs reach the point where they would like to take the bulk of their investment and gain out of the business bus are not yes ready to cut the cord entirely. They may want to continue to run the business or at least retain a minority interest. There are several ways this can be accomplished. If the company is still privately owned, the remaining shareholders may want to purchase the entrepreneur 's stock at current market rates so that control doesn't end up in other hands. In fact, the shareholders ' agreement that was drafted when the entre –preneu set up the corporation mar have specified that shareholders must offer the stock to the company before offering it to anyone else.
The Harvest Plan
Entrepreneurs need to think of their companies as part of an ongoing career path. So says Jerome Katz, professor of management at St. Louis University. He has been studying the career paths of entrepreneurs and finds that there are four major types:
Growth entrepreneurs. These are entrepreneurs who measure their success by the size of their company. They tend not to have an exit plan because they, re always striving for bigger, better, faster.
Habitual entrepreneurs. These are people who love to state businesses and may start and run several at once. They are probably even less likely to have an exit plan because there are always new opportunities out there.
Harvest entrepreneurs. These entrepreneurs start and build a venture for the
pur - pose of selling it. Some of these owners will start,build. And harvest many com – panies during a career.
Spiral, or helical, entrepreneurs. Women entrepreneurs often fall into this cate – gory. These entrepreneurs are driven by what is going on in their personal lives, so their entrepreneurial tendencies emerge in spurts. At time they may appear oblivious to the business as they deal with family issues.
SELLING THE BUSINESS
Selling the business outright to another company or to an individual may be the goal if an entrepreneur is ready is ready to move on to something else and wants to be finan – cially and mentally free to do so. Unfortunately, however, selling a business is a life – changing event because for several years, the entrepreneur has probably devoted the majority of his or her time and attention to growing the business, and it played an important role in structuring the entrepreneur's life. Although the market may be good for selling the particular type of business an entrepreneur owns, he or she may not be ready to “retire” or may not have identified what to do next. Conse quently, after the business has been sold, its owner may experience a sense of loss, much like what accompanies the death of a loved one;without preparation, emotional stress could be the consequence. Therefore, planning for this enormous change will be vital.
CASHING OUT BUT STAYING IN
Sometimes entrepreneurs reach the point where they would like to take the bulk of their investment and gain out of the business bus are not yes ready to cut the cord entirely. They may want to continue to run the business or at least retain a minority interest. There are several ways this can be accomplished. If the company is still privately owned, the remaining shareholders may want to purchase the entrepreneur 's stock at current market rates so that control doesn't end up in other hands. In fact, the shareholders ' agreement that was drafted when the entre –preneu set up the corporation mar have specified that shareholders must offer the stock to the company before offering it to anyone else.
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