Do you dread the thought of exiting your business?

Have you, like so many business owners, failed to develop an exit plan because you are too busy?

Chances are you probably haven’t given it much thought.

This is a huge mistake and will cost you dearly if you want to achieve a profitable sale.

Putting together an exit plan that grows and strengthens the value of your business, makes good sense whether you intend to exit your business in 1, 5, 10 or 20 years time.

Put simply, an exit plan consists of a strategic plan (a roadmap) for growing the value of your business integrated with your personal and financial goals and objectives.

Creating A Succession Plan

Succession planning is a process that ensures your company is prepared for the future. That way, when a key employee leaves, you already have someone in mind to fill their position (who hopefully, has been groomed for this eventuality).

Succession planning keeps your business moving forward during the inevitable changes that come with running a business. These plans serve as an excellent tool for retaining your strongest performers, who often tent to be the type of employees who need to know where their career is headed.

When it comes to establishing personal and financial goals, think of establishing three principal exit goals by asking yourself these three questions:

  • How much cash do I need when I exit to support the lifestyle I desire?
  • When do I want to leave the business?
  • To whom do I want to sell/transfer my business?

Your successful exit strategy is based on asking yourself the fundamental question: What do I need to do now and in the future to grow the value of the business?

The answer to this question is, there is no ‘one-size fits all’ approach but there are key areas that you will have to deal with. Where you are on the business lifecycle will determine which of these key areas you will need to place most emphasis on.

Here is a list of four key areas to ensure success.

  1. You will need to create a solid plan that matters to customer and differentiates you from your competition – a roadmap for growing the value of the business. Begin with the end in mind. The plan will provide you with clarity and focus, making it clear what you should be doing and in what order. Them you must take action – put in place the right disciplines to run your business. Involve your employees at all levels in your planning and hold them accountable for achieving your goals and objectives. Be transparent and establish regular meetings to keep them informed of the business progress toward these goals.
  2. Develop a strong leadership team: invest and educate your team, along with yourself.
  3. Build a business that can grow without you. Having a business that depends on you is practically worthless. Be willing t change your role, to take a more strategic role and embrace a different way of thinking that accepts having less direct control over results. Hire people that are smarter and better than you in critical areas of the business and learn how to delegate. Pay attention to developing and deploying scalable systems, processes, structure, and a culture that supports day-to-day operations and the achievement of your goals and objectives.
  4. Build a fortress balance sheet. Manage cash with even greater fervour than you pay attention to revenue and profit.

Planning to exit your business is a new process for many business owners.

Make sure you seek professional help and guidance from experts and professionals who can share their experience and knowledge with you.

Do you dread the thought of exiting your business? Get in touch if you would like to discuss your exit plan. Book a call