you may be just starting up your business with the excitement of a new
project and the development of things such as brand systems products in other
operational detail one detail often overlooked at this early stage is how
will you exit the business when the time comes to move on
even before an entrepreneur starts a business they need to know when and how to get out of it
having an exit plan in place is not an indication of your lack of confidence of
being a success on the contrary building your business with the end in mind will
ensure you achieve the ultimate goal in business which is to sell and reap the
rewards from what you've created you only get to successfully sell your business once
and for many it will be the largest sale they make in a lifetime it's critical to
get it right and to do this the earlier you plan for your exit the better there
are several ways you can exit your company you can sell it which is the
most common approach for small to medium-sized businesses you may pass the
reins to another family member will have an employee buyout maybe over time the
sad alternative to these options is the business simply closing its doors
there's been no plan it's not been traded profitably or a buyer cannot be
found for the business these are the least financially rewarding options but
there also it is a high emotional impact on an owner who's put their life and
soul into a business often over many years just to close the doors and walk
away the worst business exit strategy of all but sadly the most common is for an
owner to continue to run the business till they wake up one morning knowing
they just can't do it anymore they start desperately seeking an exit
they get in a business broker to see what the market value is and they take
whatever price they can get now the outcome is usually much less and they
could have achieved if they'd planned the exit strategy whilst they still have
the passion and drive for the business to avoid this situation a solid business
plan and exit strategy is important to achieve the best possible outcome so
some of the key attributes you will need to consider to achieve a smooth exit
over time will include
a well-written business plan doesn't have
to be a lengthy document but it needs to give you the key performance indicators
for your business the goals the vision and the action plan that will lead you
to successful outcomes without a plan it's a bit like driving without a map
fully documented business systems help with
streamlining your business creating efficiency and ensuring your staff are
easily trained having systems that a new owner can take over and manage with a
seamless transition will improve the final sale price
if you are a key person in your business develop systems and staff to replace you
a good test for any business owner can you take a four week holiday and can the
business run without you will it be profitable how many phone calls will you
get will it still be there if not you have more work to do on your management
money is the lifeblood of your business
having financial management systems that you understand and can report from time
to time day to day or night to night is the key to knowing your profitability
and your performance against your business plan know your numbers so you
can drive your business plan
to really drive your business and achieve a good exit team up
with professionals who can help guide you on how to run your business a good
team of professionals will include an accountant a lawyer business broker
business coach and financial advisors bankers insurance brokers etc get them
involved in your planning and use their expertise to optimize your exit from the
business when you choose when the time comes if you run your business so that
if you received an irresistible offer today you'd be able to be confident that
the buyers due diligence would unearth nothing that could cause them to
withdraw it that's a great business once or twice a year look at your business as
though you were interested in purchasing it when you look with buyers eyes you
may be surprised at what you see and you'll make changes that will ensure a
fantastic exit when the time comes hey thanks again for watching if you want to
know more about starting a business business sales start right now hit that
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