MONITORING BUSINESS

After sales/expenses are projected, monitoring occurs to reveal areas of success and areas that need to be improved.

During the Start-up Year

Monitoring is suggested

@ 3Mo, 6Mo, 12Mo

CATEGORIES TO MONITOR

• Finance
• Supply Chain
• Sales
• Marketing
• Customer Relations/HR

COMPARE FINANCIALS

• Income Statement (Rev/Exp)
• Balance Sheet (Asset/Liab/OEq)
• Sales & Net Profits
• COGS (Cost of Goods Sold)
• Financial Ratios

COMPARISON TOOLS

• Product Trends
• Employee Turnover
• Target Market Analysis
• Amount of Web Traffic
• *Found Internally & Externally

Monitoring can help make improvements in pricing, finding suppliers, reducing spending, setting payroll, expanding your customer base.

EXIT STRATEGIES

WHY DEVELOP A PLAN?

• Separate identity from the business
• Too many emotional conflicts, if staying on
• Helps to find new projects

BEST OPTIONS

• Sell the company
• Go public
• Release the cash flow
• Inject private investor money

1. SELL THE COMPANY

• Evaluate assets and cash potential
• (the business is only worth what the buyer will pay)
• a. Merge with other similar companies
• b. Train others & Sell it to the employees

With a long-term exit strategy, it can become more profitable as you decrease your level of involvement.

2. GOING PUBLIC

• IPO on the stock market will raise money
• a. Finance growth
• b. Repay debt
• c. Provide a way for the owner to exit in peace

3. RELEASE CASH FLOW

• Withdrawal of owner's investment
• (stop reinvesting & growing the business)
• Owner can keep control
• Transfer ownership to family member

4. INJECT PRIVATE INVESTOR MONEY

• Finance growth
• Repay debt
• Provide a way for owner to exit
• Provide transfer of power/company control