Exit Strategy No business should be without an exit strategy. The exit strategy for Community State Farm Agency will entail us to hire financial planners, attorneys, and business and tax advisors to help guide us through the sale of the business. This is a small business and because they tend to fold every year an exit strategy is crucial. There is not a guarantee that our business will continue to grow and flourish. Due to all of the partners putting a percentage of equity in the business that is great but we had to make sure that we didn’t put all of our eggs in one basket. We consider this a long term investment therefore we are faced with two exit options: * Let it run dry: We are a sole proprietorship and our business is small. In the years before we plan to exit, we can increase our personal salary and pay ourselves bonuses. We must track and settle all remaining debt. After that we can close up the doors and liquidate any fixed assets remaining. We must also remember to pay our tax liability. * Liquidate: Sell everything at market value and use the revenue to pay off any remaining debt. This is a
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