When you’re running an eCommerce store, you need to make sure that you prepare for all of the eventualities. One of these needs to be is an exit strategy. Without an exit strategy, your eCommerce business could crash and burn. The Family Business Institute found that 70 percent of all family businesses fail within the first generation due to a lack of exit plans and failure to prepare efficiently. Here are some of the things you will want to consider for your eCommerce store.
Files, Passwords, and Account Access
The first part of your exit strategy needs to be to gather all of the relevant information to running your eCommerce business. You may have a lot of information in your head or scribbled down on random sheets of paper. You need to make sure that you can find it when it’s needed, and, more importantly, your children, spouse, or partners need to be able to find that information as well. Since this information is confidential, you should keep it secure in a safe or in an encrypted file.
Make Your Plans Clear
One of the big problems for businesses moving into the second generation or after a failure is that there’s confusion about what was supposed to happen. It’s hard enough to get agreement on the big things, but getting agreement on the small things such as the provider for a point of sale terminal or a return policy can be even more challenging. You need to make sure that what you want done with the business is clearly determined in advance. After you decide on it, you need to let everyone who can influence the later decisions know what’s going on and what you want to have happen. It helps to put it into writing.
Get Legal Assistance
One of the best ways to develop your exit strategy is to make sure that you have everything in line with your state’s laws. Remember that the controlling state law is not just going to be the state in which you live. If you have incorporated in another state or if the property is located in another state, those states’ laws will control as well. Additionally, when you make a legal agreement that details how the exit strategy is to be handled for your business, it is much easier to enforce. In fact, it can be taken into court to be enforced rather than just leaving it to your family and partners to handle for you.
Setting up an exit strategy is not the top priority for many eCommerce store owners, but it is an important one. To make sure that your business continues, you need to make sure that you have a clear exit plan. To do this, put together a set of files, passwords, and account access codes so that anyone who needs the information can get it. Just make sure to keep it confidential and safe. You then need to decide on your plan and make it clear to everyone who is in a position to influence it. You should also get it put into writing in compliance with state laws.