Additionally, an LLC does not pay taxes directly from business income; tax due is paid at the individual
level. Also because of the nature of this business LLC might show formal commitment to the business,
which will help create better credibility with vendors, potential customers, and employees.
The Small Business Administration outlines a successful exit strategy entailing a succession plan before
the exit strategy is initiated. Then, the business will seek a business valuation expert to understand all
options available and determine the valuation of the business during the exit strategy period.
Three key steps taken for the succession plan will be to select a successor, develop a formal training plan
and support it with a timetable to follow the succession-training plan. An exit strategy of focus will be
building the company to the point of successful positive income streams, valuing the business and then
selling it through a business valuation and a developed succession plan for the investor. The business may
also consider expanding the website into the selling of more electronics with additional bidding models.
Smart Tech will be an online “Bidding Fee Auction” / “Penny Auction” company. It will allow its users to
purchase a variety of electronics products from mainstream brands such as Sony, Samsung, Apple, LG and
Lenovo through a bidding style platform. A survey conducted by the NPD Group Inc. finds that consumer
electronics are among the highest purchased items online, with 46% of consumers surveyed indicating
that they have shopped for consumer electronics online within the past the last year. Therefore, the
business will focus around consumer electronics. The business believes that it is vital to establish trust
early on, with such competitive prices potentially causing skepticism in the marketplace.
The company started a basic start-up phase website that could be viewed on the following link,
The company will therefore begin by providing a variety of lower cost electronics under $200.00, as to
reduce risk factors amongst consumers, until it has time to establish a trusting relationship with previous
customers and convey a very trustworthy image and transparent operations. Initial products may include
economical television models, Blu-ray players, MP3 music devices and cell phones.
As presented in the products and services description, the company will begin by selling less expensive
electronics, but then move into higher quality brands. However, it will not completely eliminate the
posting of higher quality brands, as it does not want to obtain an image of selling low quality electronics,
but rather substantial deals on higher end electronics.