The earlier you establish your exit strategy, the clearer the vision for you and your company becomes.If you don’t believe preparing is a priority for your business right now, these 10 reasons will open your eyes to the benefits of creating your exit plan early for the present and future of your business.
The best time to plan an exit strategy is as soon as you start your business.
Some entrepreneurs look at exit planning as a pessimistic process, but it’s actually a great way to pave the way for growth and development.
The most common exit strategies involve ensuring that you get the most value possible out of your business, options to consider include: As mentioned above, an exit strategy is just another plan in your business.
With your exit strategy, you can outline your road map to success, complete with ideas of what you want your business model to look like five, ten and twenty years from now.
A study by Securian Financial revealed that 72% of small business owners have no exit strategy at all.
The reality is it can take years to execute a successful exit, so the endgame needs to be in your mind from the start.
If you’re selling to another buyer, then can you work something into a contract that ensures your most loyal employees still have a job?
If you’re merging with another company, how can you make sure that the mergers you choose are moving your team towards the goals they wanted to achieve when they first joined your business?
Having at least a basic exit plan in mind will ensure that you don’t go too far off track over the years as you move towards your end goal.
Think of it like the compass that’s keeping you running in the right direction.