A detailed exit strategy is always part of a strong business plan. After all, when done right, it can help streamline your daily operations. Here, we discuss a proactive approach to selling your business and how thinking about tomorrow can help you make more profit today.
There’s nothing quite like the thrill of the start-up. Kicking off any new venture is a very special feeling; overflowing with potential, your freshest ideas at the fore, the open road ahead of you. After all, the excitement of getting a new project off the ground is one of the many reasons people take the initiative and branch out on their own in the first place.
During this busy time, it might seem counter-intuitive to begin thinking about the end of your journey. In fact, as your business grows and you continue to build, it may seem like there is never a suitable time to consider your exit plan. Particularly if times are good and the money is rolling in!
In truth though, this critical stage in your business journey is the perfect time to begin drawing up your exit strategy. In addition to this, as you build your business over the coming years, you should be constantly updating and refining your plan to account for the changing face of your business. Your exit plan is just as important as building your business, after all, it’s your future prosperity at stake.
Today, with the growth of eCommerce and mobile technologies, there are any number of exit plans available depending on the type of business you run. Traditionally, you might hand down your business to relatives or sell to other interested parties upon retirement. However, considering the fast paced nature of today’s market, this may be more challenging for you than for previous generations.
Whatever area you operate in, knowing what’s next for both you and your business will help you make a better informed decision. For instance, if when you start your business you are a fresh faced entrepreneur heading ever upwards or an experienced old-hand looking towards retirement, your motivations and future plans are likely to be drastically different.
The point is, creating an exit plan now will give you plenty of time to prepare for the next step in your journey. And as the old adage goes, tomorrow belongs to those who prepare today. To help you better make the right decision for your unique venture, take a look at our guide on how to sell your business to get a handle on just what kind of approach you will need to take.
It’s Just Good Business
Future plans aside, whether you run a local cafe or you operate at the forefront of the latest tech trends, you’ll find that a well-planned exit strategy is just good business practice. Most people start their business with the best intentions, but compromises are made, laziness sets in, and the daily grind can begin to take its toll.
With this in mind, your exit plan must detail the optimal way in which your business is run. As previously mentioned, this should be fine-tuned as the business evolves. Additionally, it should implement rolling improvements that address all of those jobs that were left wanting over the years. After all, you wouldn’t want to watch your hard work disappear as a new owner struggles to come to terms with an overly complex business.
Here, the efficient running of your business will not only allow you to detach yourself emotionally and allow you to look objectively at its worth, but also improve your profits on a daily basis. Once all of this is addressed, you can expect the value of your business to rise as prospective buyers realise its true value.
There are many obvious reasons as to why an exit strategy should be part of best business practice. These include planning for your ideal future but also having the luxury of being prepared if things turn bad. What is perhaps less obvious however, is the impact and improvements a detailed exit plan can bring to the running of your business.
Put simply, a decent exit strategy can also be used reliably as a way to optimally run your business. Knowing this, you should be preparing your exit strategy in tandem with your business plan and, if you don’t already have one, you should start thinking about the future as soon as possible.