Before your arts entrepreneurship business takes off and becomes wildly successful, create an exit strategy. Entrepreneurs, very often, build and sell, build and sell. This is because many are motivated by the process of creating and seek to profit from their endeavors.
Once having gone through the ideation process and having chosen collaborators or partners, imagine how you will gracefully exit the business, if you choose to sell your interests. Doing so, can prevent unfavorable outcomes and conflicts with collaborators. Ex. If your partner decides to sell their shares in the business and does so to a person you feel you cannot work with, if there is no contract or language preventing your partner from doing so, you are stuck with this person. That is an unfavorable outcome. Properly defined exit plans can prevent this from happening.
Imagine your business understanding how it is structured. Try to think of all possible scenarios regarding either your exiting the business or your partners doing so. In what ways do you wish to have this transpire? Do you want to have a vote on who shares can be sold to? Do you want to have right of first refusal to buy their shares? Consider any and all scenarios that could occur in the selling of the business and define how an exit occurs before the business is successful.
In this exercise, students learn to define a clear exist strategy to prevent future conflicts with business partners and stakeholders.
Choose an Exit Strategy by James David Hart is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.