Sascha R. Rowold

Amongst the trends that we see in the marketthat will see an upswing in e-commerce activity during 2008 are the following:

Better website accessibility and usability. More Multi-Channel Commerce solutions for business users based on a single data and pricing information source. More user friendly and socially sympathetic commerce websites thanks to Web 2.0 software tools with greater community and user input and involvement. Increased use of a sales catalogue on retail websites with features such as the intuitive turning of pages.
Increased use of ASP multi-tenant solutions which will save money as these can manage all tenants on a single platform. This will also enable new business opportunities for companies to offer white-label service offerings to partners. Comparative online customer service stats will be available so retail sites and others can ensure they are providing top levels of service and competitiveness. Increased accessibility of digital downloads thanks to functionality such as Software as a Service. Greater integration with physical stores. More multi-national e-commerce websites will be established which will led to a need for more international payment solutions including automated tax and delivery calculation
Integration of advertorials in shops e.g. of partners (cross selling) as ad spending on the internet further increases
Long tail cataloguing will allow retailers to provide more choice for customers
Brand oriented websites are important for brand presence and brand loyalty as the competition is just one click away. International websites will be more important than ever in 2008 as many retailers broaden their global presence and global offering which brings product information implications with global differences

Now, it will be interesting to see if we are right this time… and if you will be able to make money in this still highly competitive market.

* Heavier Integration of User Data and Personalized Search in Standard Results
* Mobile Search Explodes
* Death of SEO as we know it
* Social Media Marketing Explodes
* Social Media Marketing Jumps the Shark
* Google Winning/Losing Market Share in a Big Way
* Social Networks as Search Platforms
* Record Search Marketing Budget Levels
* Increasing Searcher Sophistication
* New Paid Search Channels
* Search Engine Consolidation
* Death of Universal Search
* “Real” Solutions to Click Fraud
* Search Marketing Agency Consolidation

Well, this year will tell what will really happen… never the less, it will be interesting to see. Also, how Google Analytics will kick is going to be interesting to see.

The exit process

The process you will have to go through will depend on how you are exiting the business.

Selling the business
If you are selling the business there are several stages you will go through:

- grooming your business for sale
- valuing your business
- identifying and marketing your business to potential buyers
- negotiating with potential buyers
- completing legal due diligence
- finalising the sale and transferring ownership

Prior to the sale, you should get the business into shape by reducing overheads, debts and excess stock and getting your finances into good order. You will also require detailed financial information, including audited accounts and forecasts which you can prepare in advance. I will provide some detailed information on all these detail issues soon.

You should seek specialist advice from your accountant, solicitor or corporate adviser. They will help you reach a realistic valuation, and identify and market your business to potential buyers. I will provide some additional information on how to value and market your business soon as well as on how to complete the sales process.

Flotation
Businesses planning a flotation will go through a similar process and will require a detailed business plan, prospectus and accounts which comply with specific accounting standards. I will provide some detailed information on floating a business soon.

Closing the business
If you are simply closing the business, the process should be much simpler. You should contact the relevant authorities to advise them you are closing down and calculate and pay off any outstanding liabilities (such as VAT) and debts.

If you have employed any workers you will also need to give them the proper notice and any outstanding pay and benefits. Employment laws differ in every country need careful planning.

Decisions that could affect your eventual exit

It is easy to forget that the decisions you make today will not only affect how successfully your business gets off the ground, but can also seriously impact on your eventual exit from the business.

Key considerations

Business form - the legal structure you choose can restrict your exit options and affect how potential buyers view the business. For example, a sole trader can simply close the business and pay off any outstanding liabilities but a limited company with a separate legal identity will probably be more attractive to potential buyers.
Articles of Association - these set out the rules for running the company affairs. If they are too restrictive they could limit what the business can and can’t do. This could put off potential buyers or investors who are looking to diversify.
Partnership agreements - these may specify what will happen if one of the partners wants to exit the business, eg due to ill health or retirement.
Property agreements - these can be notoriously difficult to get out of, if you need to, without suitable break clauses or the right to assign your agreement to another party.
Shareholders - the involvement of shareholders with voting or preferential rights can make it more complicated for an outside investor or buyer to take over the business.
Capital and ownership structure - straightforward structures can help make your business more attractive and can minimise potential barriers to sale.
Accounting procedures - good accounts will give potential buyers and investors more confidence in your business and make completing the sales process easier.
Employee/customer/supplier contracts - clear, simple contracts for all business relationships can help avoid disputes, clarify responsibilities and make it easy for potential buyers to see what they would be taking on.

Before committing to any important decision it is vital to seek advice from a suitably qualified expert. See our guide on how to choose and manage an accountant.

When you’re setting up your business it’s essential to think about how you’ll ultimately end your involvement with it.

A well thought-out exit strategy can help you to maximise the value you get from your business, successfully market your business to potential buyers or investors and ensure you end your involvement with as little disruption to the business as possible.

Regardless of whether your exit occurs to a planned schedule or you are forced to make a move for unexpected reasons, the decisions you make when setting up can affect how easy it is for you to eventually exit your business.

This “guide” provides an overview of how some decisions can affect your ability to exit the business successfully, and shows you how to prepare and manage your business to maximise its value. It also covers the different exit options available and outlines their advantages and disadvantages based on my personal experience and some research.

Why you need an exit strategy:

If you’re setting up a new business you’ll have a clear vision of what you want to achieve from it. To maximise the value you get from the business it’s essential to think about how you’ll leave it further down the line.

Carefully planning your exit from the business can help you to:

- mould your business into the ideal shape for your chosen exit option
- maximising the value you get from it
- groom successors if they’re coming from within the business - whether they’re a family member or part of your management team
- exit at a time of your choosing, when the business is doing well and the market conditions are advantageous

Ideally, you should include an exit strategy in your start-up business plan. It can then be reviewed and revised whenever you work on your annual business plan and budget - and you can steer your business in the direction that your exit option demands.

If you manage an existing business and don’t have an exit plan, you should now think about what your preferred exit option might be - and consider whether you could change the way you run your business to help you achieve it.

The way in which you exit can affect:

- the value you and other shareholders realise from the business
- whether you receive a cash deal, deferred or staged payments
- the future success of the business and its products or services
- whether you retain any involvement in or control of your business
- your tax liabilities

Leaders inspire people with clear visions of how things can be done better. The best leader do not provide a step-by-step instruction manual for workers. The best leaders are those who come up with new ideas, and articulate a vision that inspires others to act.

Creating a Vision

In one of his first speeches as CEO, Jack Welch explained that he was not going to lay out an “all-inclusive” grand strategy or step-by-step agenda for the company. Instead, he was going to articulate a vision and a few clear goals for the company. He has always felt that best leaders are visionaries. They do not get caught up in the minutiae or obsess over every detail, but instead inspire others to execute on that vision.
To Welch, there are several reasons why it is better to lay out a general vision and not an exact blueprint. It is the leader’s responsibility to come up with the vision. Once the vision was communicated, it is up to the team to turn this vision into a reality. A leader who spends too much time on the details is likely overmanaging. It is much better to give a general direction and empower the team to figure out the exact route.
Jack Welch believed that the only way to lead is to talk about company’s values, not numbers. Numbers have little to do with creating a vision of fulfilling a mission; they don’t instill corporate values into the minds and hearts of the employees, and they don’t provide much help in living up to those values or carrying out the vision. In short, it’s not management philosophy, it’s just a lot of cheerleading. And cheerleading doesn’t turn a company around.

Create and project a clear vision. Best leaders are visionaries. Give a general direction and empower the team to figure out the exact route. The leader’s unending responsibility must be to remove every detour, every barrier, to ensure that vision is first, clear, and then real. The leader must create an atmosphere in the organization where people feel not only free to, but obliged to demand clarity and purpose from their leaders.

Articulate a few clear stretch goals for your company. Set stretch goals, and if people don’t make them, don’t punish them for trying. The key is helping people reach for the unreachable, and to celebrate when they come close. That will build confidence into the fabric of the organization, and prepare the team for greater challenges.
Make sure you have the very best people to carry your vision out. Hire those most capable of turning visions into reality – ask questions about how they might go about attacking a particular thorny problem. Promote those people who have the best record of making things happen.