Plan Your Business Exit Now
Planning for an exit from your business is something that needs to be done well in advance. Too many business owners leave it too late or don't plan for it at all. Don’t make that mistake because you'll never get what you want for your business to set yourself and your family up properly.
But you might be thinking - why should I plan for my exit now when I’m not even close to retiring? Or perhaps you’ve only recently started your business journey and you’re full of enthusiasm. So why think of an exit now?
Even if you don't plan to leave your business in the near future, it’s so important that you think about your exit strategy now because that’s how you can maximise the value of your business.
So, rather than being a rudderless ship & waking up one day realising that you don’t have a saleable business or an exit strategy – let’s be very strategic about it now.
What does your exit look like?
Being strategic about it starts by thinking about the kind of exit you want. Are you building the business to sell or are you looking to pass it down to the next generation? Knowing which route you want to take will help you plan accordingly.
Having made a plan, you can start to make decisions with the end goal of maximising the value of your business. This includes things like increasing revenue, reducing unnecessary costs, and streamlining processes. You can also look into ways to increase the value of your business by investing in things like marketing, staff, technology, etc.
When do you want to exit?
The second thing to consider is your timeline for exiting your business. Do you want to exit in the next five or ten years? Do you want to retire in 15 or 20 years? This timeline will impact the kind of decisions you make for your business now and in the future. If you want to exit sooner, you might have to pick up the pace on certain things unless everything’s going according to plan.
The importance of an exit strategy
The consequences of not planning for your exit can be terrible. You may end up having to fire-sell your business, meaning you get nothing for it. Or, you may have to rush the process and not give yourself enough time to get the maximum value for your business.
Your exit plan is as important as your business plan because it brings you greater clarity and makes your decision-making much easier. Knowing your journey and destination is paramount. You’ll have a good grasp of what needs to be done and within what time frame that needs to happen.
Compare it to driving somewhere for the first time and having the security of a GPS to guide you whenever you’re not quite sure where to go. The navigation provides the direction and estimates the time needed to get there. It’s very much alike.
So, to summarise, take the time to consider the type of exit you want, the timeline for your exit, and the strategies you need to put in place to maximise your business value. Decide on your exit strategy now (even if it changes over the coming years) and start working towards it.
You’ll be thankful you did.
If you’d like to learn more, please take a look at my most recent podcast episode on this exact topic:
Click here for the podcast episode.
Click here to watch the video.
Josh ‘Exit Strategist’ Stone
PS: If you’re interested, here are 4 ways I can help you right now:
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