Have you planned your exit from business?
Even if you are just starting out, you should have an idea what you are building towards and why. You may think you are going to be in business for decades to come. That’s fine but what then?
Everyone needs to consider their exit.
It has been estimated that of those businesses available for sale, just 30% successfully sell each year. Is your business your pension? Will you have a pension?
For a business to be really saleable, it needs to be able to operate without you. Can you plan to achieve this.
Planning is the single biggest factor for whether a business is saleable. Only around 10% of businesses have a formalised exit strategy that is ready to execute. Of the remaining 90%, 30% have a semblance of a plan, and the remaining 60% have no strategy at all.
What should be part of you plan:
- Planning and documenting systems and practices
- Adopting best practices
- Maximising the value
- Thinking about the type of buyer you need
Decide what route you want to take and plan accordingly. You may even have a number of well-planned alternatives. One of these of course, must be what happens if you get ill and cannot work.