When you sit down to write your business plan, it should contain well-thought-out elements that can get your business or brand off to a great start. It should include your executive summary, business description, marketing strategy, your goals for operations, and much more.
When you plan your harvest strategy, it focuses on all of these aspects, as well as how you’ll leave your business or brand when you’re ready to retire away from it.
Regarding harvesting strategy, Wiley Online Library defines it as “Harvesting (or exiting) is the method owners and investors use to get out of a business and, ideally, reap the value of their investment in the firm.”
Are you hoping to start a new line of products, but you’re having difficulty finding the funds? Are you thinking of ways you’ll be able to retire from the brand you’re building? A harvest strategy is one way to devise a long-term plan for if, or when, you leave your business. Or even for a company that wants to continue to sell a product with minimal investment.
Harvesting can also mean planning how you’ll leave your business. The strategy is a method by which investors and owners “get out” of a company after reaping its value.
The harvesting strategy can apply to many business types. For example, let’s pretend you’re a well-known root beer brand. For years, your root beer has been a mainstay refreshment, and people are well aware of your brand. But new ideas within today’s market has your executive board members excited to talk about starting ginger beer and kombucha lines.