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By definition, business harvesting is a systematic practice by which the entrepreneur recovers value gained by the entity through the selling of individual assets or the entire firm as a whole.
Entrepreneurs consider exiting or harvesting a business due to market maturity or decline, to realize profits, changes in market conditions, personal circumstances, and risk management. These factors help them respond to both financial and personal goals.
A business may decide to employ a harvesting strategy for reasons including (but not limited to): Arrival of a product or business line at the cash-cow or declination stage. Here, marketing the product is no longer necessary, and resources can be allocated to other avenues that may be generating increased revenues.
Finding funding is a crucial challenge when starting a business. Finding business investors and financing sources is one of the biggest challenges new business owners face. Not every business needs an immediate, significant cash infusion. But, you must ensure you can keep the business running for the long term.
Therefore, employing a harvest strategy will allow companies to harvest the maximum benefits or profits before the item reaches its decline stage. Companies often use the proceeds from the ending item to fund the development and distribution of new products.
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An entrepreneur who is the owner of more than one business is called: Portfolio Entrepreneur.
Having a harvesting strategy upfront is critical for guiding the entity owner towards achieving the business mission. A business harvesting strategy could be characterised as the path to the finishing point at which the entrepreneur is expected to celebrate the sacrifices made, that is, effort, time and money.

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