As a business owner, it’s never too early to think about an exit plan. Reading the summary from the book Seven Habits of Highly Effective People, the author, Steve Covey says “begin with the end in mind.”
One reason to have an exit strategy is it keeps you on task to grow your business, so when it’s time to exit, you’ll have an attractive business for buyers. Another quote from Stephen Covey’s book is “Changing our habits to improve what we are can be a painful process. It must be motivated by a higher purpose, and by the willingness to subordinate what you think you want now for what you know you want later”.
Below are some questions to ask to help you prepare for an exit strategy:
- What will make your company attractive to a buyer?
- Is your company growing?
- Is your business dependent on you?
- Do you have a strong management/leadership team?
- Is your team able to handle the day to day operations of the company?
- Are there systems and structures in place for running the business?
- Are your financial records in order and up to date?
As you answer these questions you’ll see how you need to start preparing your exit plan so you can maximize the value of your business when it’s time to sell. This can be overwhelming, so start small by changing one thing. A question to start with is, is there one thing you can do that you aren’t doing that would make a difference in your business?
Our experienced team can help with getting an exit strategy in place for your business. Getting the a business valuation may be the first step to see where you are at and how to improve.