In the initial stages of your business project, developing a business plan would have been at the forefront of your efforts. Additionally, you should have at least considered your exit strategy. Even if your plan is to own and run the business for the next 30 years, it’s important to have an exit strategy ready for when the time arises.
There’s a range of ways you could exit your business. You might decide to pass it on to your children, sell it or aim to be acquired by a larger company. Whatever you plan, or whatever you’re forced to do, you should have the necessary things organized and prepared for the transfer. An effective exit strategy can make the difference between failure and success.
From the very beginning, you should be thinking about the end. Even if you’re well past the beginning, it’s never too late to start planning your exit.
What’s Your Ideal Exit Strategy?
As your business progresses, your exit strategy is likely to evolve, but it’s important to always have a plan in place. Circumstances change and your end plan can be altered but having something to work towards is always beneficial. If an illness, or any event, causes you to suddenly no longer be able to run the business, it will be much easier to exit with a plan in place. Reassess your business and exit plan every 6 months to ensure it’s the best possible result for you.
Consider what you want out of the business. Is it a big lump sum of money through a sale, or do you want to create a legacy for your children to carry on with? Understanding what each option entails is crucial in being prepared for the exit. Think about who you are comfortable handing your business over too. No doubt it will be hard to let go of something you put time and effort into, but does this mean you would rather see it go to a family member, or an anonymous buyer? Knowing what you want to achieve can help with important business decisions.
Your Business Must Be Appealing
To attract potential buyers, your business must appear appealing, be at peak-performance and have well trained and educated staff. Your process and systems must be organised and easily transferred. Important records and legal documents must be in order so due diligence can be carried out. The sale or transition of a business is a complicated process where a whole range of issues must be properly seen too.
When the time comes to sell, a service such as Digital Exits can help with the entire process. Ensuring your business is valued correctly, your records are in order and the sale is marketed properly can go a long way for your profit margin.
Always Think About the End
Every decision you make should be considered with your end goal in mind. From the beginning of your venture, you should have a plan in place detailing how you want to exit or transition from the business. Not only does this help your business move towards where you need it to be, it will also make the exit much simpler when the time comes.
Having a clear vision in mind is important for the direction of the business and the involvement from staff.
You never know what tomorrow brings. Unforeseen circumstances can make it difficult to continue running your business, or a prospective buyer could make an offer. Being proactive with an exit strategy means you can be prepared when such things arise. Every decision you make surrounding your business can impact on its eventual sale or transition!