Most business owners find it hard to believe that they should start thinking about the sale of their business from the first day of acquiring the business – but they should. Even experienced business owners get swept up with the daily operation of their business, and other distractions of everyday living – and forget that one of the most important parts of owning a business is to PLAN THE EXIT IN ADVANCE.
It’s actually pretty simple. Like any journey, we need to plan our final destination at the start of the journey, and then we can set a course, and plan the path to the end.
So, what’s involved? All that is required is to:
1. Decide when you want to exit, and how much you will want to sell for
2. Plan on how much profit the business will need to show to sell for the price that you want to achieve
3. Set a program with targets and KPI (Key Performance Indicators) that need to be achieved to realise the price sought.
4. Plan to prepare the business for sale
5. Seek advice from credible advisors to keep you accountable and “on-track”.
6. Measure your performance and adjust where necessary to hit targets
7. Make it happen
Put together a team of advisors who can assist to achieve the outcome. The best team is one which is supports your exit strategy.
The need to have an Exit Strategy is clear… “Failing to plan – is planning to fail”
Business owners must have three separate plans.
· A Business Plan
· A Marketing Plan
· An Exit Plan
Do you have all three?
The first plan to prepare should be the Exit Plan. Remember to start with the end in mind, and work back from there.