Have you considered your exit strategy?
Have you gotten into business focusing on just getting it up and running? Or have you only focused on the next immediate step?
Let’s be honest here you don’t intend to run your business forever and you want to also have some time off with friends and family, so why not create a business that can run without you. How great would it be to build up a business that allowed you to have holiday time when you want. Why not a business that runs without you needing to be 100% available. This will also allow you to take time off if you are unwell and you will not need to stress about having to work to keep the business going. Well maybe now is the time to consider your exit strategy as sometimes this is a process that take years to execute.
With a great exit strategy in place this can mean that you could get a higher price for your business as it will be an easy transition for the new owner to come in and continue the business with little disruption.
So first let’s look at the things you need to consider when planning your succession or exit plan.
- When you start your business it is good to have the end in mind so what is the goal for the business and what is your purpose or your vision?
- Do you want to either pass your business down to a child or employee or do you want to prepare your business for sale? This is called succession
- What processes or procedures need to be put in place for the business to run without you?
- What staff do you need to progress your business?
- Decide what financing do you need for the next phase if any?
- What is the ideal price for your business? This is to exit your business
- Do you have budget forecasts and cashflow forecasts to show a potential buyer?
- Do you need to consider an investor or grants to push your business to the next level?
These are only some of the areas you need to consider when you are wanting to exit your business or pass it down in succession. You need to create a business that can run effectively without your influence and can run without you being involved at all, this is what makes a business a valuable sellable asset.
Other things to consider before selling or passing the business down in succession is to look at the tax implications, the legal requirements, your staff, the value of your business and what tasks need to be completed to finalise the sale or succession.
If you want extra help with an exit strategy or something else consider our ‘One on One Strategy Session!’