Making the journey to retirement smooth and fore filling with an achievable Exit Strategy Plan.
One day, hopefully when you choose, all entrepreneurs leave their small businesses and all Enterprises get sold, merge, given away, or liquidated. Whatever your preferred outcome, you need to start planning for it as part of your initial strategy or while you still have time and options. The advantage of developing an exit strategy plan is that if you start early enough, the process will lead you to build a better, stronger, more resilient company, as well as one with a higher market value. Unfortunately, most owners don’t start early enough—and pay a steep price drop for their procrastination.
As one of our Ex Prime Ministers used to say; at the end of the day, owning a business is about more than selling goods and services. It’s about making choices that shape your entire life, both professional and lifestyle desires. Planning to finish or exit at the top of your game helps you figure out how to face your future with confidence and be able to someday look back on your journey with pride. Lets face it are you 100% ofay with todays Social Media Marketing or as keen to go to your business as you were in the first year?
Circumstances will vary from case to case, after all, as do the personalities, bias and psychologies of the individuals involved. What I can say is that the longer people have spent preparing for their exit plans, the less likely they are to experience hurdles that they can’t jump along the way. Thinking about it is not enough, you will need to write down your goals, have some alternate backup exit strategies and navigating the steps of the process:
- Step one of your Exit Strategy Plan is investigating the possibilities and expectations. It involves investigating the many options or alternatives, doing the necessary introspective work, and deciding what you do and don’t care about in an exit plan. It may also include coming up with a number; that is, the amount of money you’d need or be happy to walk away with when the time comes and at what age that you want it to happen.
- Step two is strategic planning. It requires learning to view your small business as a product itself, not just as a deliverer of products or services, and then building into it the qualities and characteristics, niche supply and demand not forgetting the systems that will maximize its value and allow you to have the kind of exit you have planned for.
At this stage speaking to an experienced Business Broker to discuss your strategies would be time well spent.
See these links in this website re choosing the right Business Broker
- Step three is about execution your exit plan. It’s the process you go through to maintain and systemise your small business to ensure that it is saleable. Whatever type of exit you may be looking for, be it a sale to a third party, a management buyout, a gift to your children, a liquidation of assets, or any of the other possible outcomes like your car it should be kept Roadworthy.
Hopefully you have retained a relationship with that Business Broker; he will be more experienced to advise if you are still on target.
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- Step four is the transition. It’s the completion of the journey; it’s ticking all the boxes and working ON the exit plan rather than IN your small businesses. It’s getting you ready for any of those possible hurdles and when you’re fully prepared for whatever comes next you will already have a plan “B”. Until you’ve moved on, not just physically but mentally (which takes the longest) to a new venture, a new industry or role, or even retirement, your exit departure isn’t complete.
Obviously, all small businesses, every owner, and every exit plan is slightly different, and these steps are differently spaced as per your strategies. For some entrepreneurs that I have worked with, the transition phase from going to market to settlement has been their hardest challenge, for others, it has been quick and painless. A lot of this was in proportion to how they had managed their business assets and stuck to a well thought exit plan.
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Again appointing the right Business Broker to manage this stage will minimise the pain; see link, why choose us;
If you would like to meet and discuss any of the above click to contact us now or call Adrian Coyne 0418885666