The majority of entrepreneurs start their business on the basis of a passion or an excellent idea and directly start working. Of course, this is the fun part of business. However, without planning your exit properly, much of this hard work can be wasted.
In an ideal world, your exit strategy should be part of your plan from the start of your business. Since this is often not the case, here are 3 tips to help you plan your exit from the business.
1. Consider several exit strategies
Maybe you want to pass your business on to your children, sell it to a partner, or sell it to a potential buyer. Whatever your strategy, you need to have certain elements in place. Economic conditions, market value, trading conditions and many other variables can affect your exit plan and change the end result. By preparing early, you can tailor a plan that works best for you, rather than waiting too long and losing the choice.
2. Always initiate a stop-loss as part of your exit strategy
If your exit plan does not work well, you should have several decision points that will dictate the path in which you will go. Ideally, there should be an alignment between your criteria, the criteria of your business and the criteria of your industry.
For example, you are on the verge of retirement and realize that your successor cannot make your replacement as supposed. You will need to reduce losses and start finding the right person before you retire.
3. Put yourself in the shoes of the buyer
If you intend to exit your business smoothly, every decision you make throughout your journey should be linked to your exit goals and what your buyer will want. You will have to ask yourself how each decision will add more value to the end result.