What is the Exit Strategy for your Web Business?

    June 1, 2006

You need to decide on your Internet business future if you haven’t done so already. You’re likely to be considering four options:

1) Keep on growing the business as a sole operator and live off the profits

There are already thousands upon thousands of people who have started an Internet business by themselves, have developed an excellent online income, and have no employees. Take Markus Frind for example who started the free dating site PlentyOfFish.com in 2003 and now earns $10,000 US a day with very little overhead and no employees. Also, Michael Cheney – author of the Website Marketing Bible – made $250,000 in one week from the sale of his (http://4buildbiz.htmlindex.hop.clickbank.net/) ‘Adsense Videos’. Is it really worth the hassle of employing people?!

2) Start employing people with an aim to own a bigger and better business

Although it may not be as easy as it was in 1999 to get your hands on some venture capital, if you can start an online business and prove that the business model works, you still have a good chance. Make sure that it’s not for vanity’s sake though. Meetings with potential investors can take your eye off the ball. Anyway, is it not possible to build your business further without any additional investment?

3) Start employing people and growing the business with an aim towards IPO

An Initial Public Offering (IPO) happens if you choose to launch your business as a public company. If your goal is world domination, this one’s for you. Bear in mind, though, that it’s common for investors to stipulate that a more experienced management team is necessary to excite the marketplace. Shares belonging to a public company can be freely traded.

4) Sell the business as soon as possible

For many people, their goal is to be bought out by a larger competitor. If you have a tight grip on a particular regional market, niche industry or market segment, then you’re making it a worthwhile proposition for a larger company to buy you out. In their view, it may be a lot more beneficial for them to buy your customer base and goodwill instead of starting afresh. If you want to sell out, you need to consider what your unique selling point is as well as subtly making potential purchasers aware of what you have to offer.

Copyright 2006 www.BuildYourOwnBusiness.biz

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David Bain is founder of the independent business articles resource, www.BuildYourOwnBusiness.biz. BuildYourOwnBusiness offers the latest business news & management advice on how best to build your own business – business articles on Strategy, eBusiness, Change Management & much, much more.