For the past two or three decades, individuals have started new businesses with the idea of building them to a certain level of success so they can sell and get maximum value for their efforts. Unfortunately, this is the extent of the exit strategy. They may have a product or service much in demand and take all the correct steps to build their client base yet have no specific plan for how and when to pass the operation on through sale or other means.
Think of this in the most concrete, practical manner and ask this question: Would you walk into an unknown cavern and tell everyone that you’ll figure out how to get out when the time comes? Probably not. Every business owner should have a definite exit strategy. Beginning the process when you’re ready to retire or when the company is having difficulty is certainly not the right time. You need an exit strategy long before you’re ready to sell your business.
Find Time Now
“Not enough time” is one of the most common excuses that a business owner gives for not developing an exit plan. Others focus on their growth strategy to the exclusion of their exit strategy with too much of that focus on what they’re earning or what the company is earning. With their eyes on growth and current earnings, they fail to focus on monetising the wealth inherent in the business. If you find yourself in this undesirable position, you’d be wise to get in touch with an expert who can guide you through the exit planning process.
When you have the assistance of a specialist such as those at Exit Strategy Group, you’ll soon discover that this is a process, not a destination. With the correct guidance, you will better understand the challenges of being a business owner and will be more likely to achieve financial freedom at the right time than you would on your own.
Not Just a Sale Price
As you work toward a successful exit strategy, you’ll discover that this is not just about setting a sale price when you’re ready to leave. You must think about whether you’ll have a future role in the business, determine what your financial needs will be so you can reap the benefits of your life’s work, and start thinking immediately about the future potential of your company. It’s essential to understand market conditions now and what those conditions may be in the future.
Industry statistics show that the vast majority of business owners plan to retire in the near future and may have even set realistic dates for this occurrence. Yet those same studies show that one in five of these company owners will never reach that goal. This unfortunate figure could be improved significantly if more business owners had definite exit strategies.