Creating an exit strategy benefits your company at every stage, regardless of the years operating your business! Business owners should have an exit strategy recorded within their strategic plan, even if it needs reassessment toward the end of their entrepreneurial career.
Why You Should Think About Your Exit Plan Now
Your strategic plan is a foundation you can rely on to run your business. Your business exit plan is reassurance that you’ll leave your company the best way possible. With your exit plan:
- You’ll know who will take over your business and have confidence in your decision.
- You will be able to decide how much involvement, if any, you want to have in your company after your exit.
- You will receive optimal financial benefits while minimizing any potential losses by choosing the best compensation strategy for your personal and professional fulfillment.
What Are The Most Common Business Exit Strategies?
- Selling to investors: with private equity, you’ll sell shares to a financial investor, and with Initial Public Offering (IPOs), shares are sold on a public stock exchange to raise capital, sales, and revenue. However, your company operations become public.
- Selling to another business: A beneficial option for shareholders who want to pursue the highest value. If a business purchases 50% of your company’s shares, they control your business.
- Choosing a successor: whether you choose a family member, friend, or manager. You’ll be able to stay involved in your business, but personal conflicts may occur.
- Management/employee buyout: management or employees compile resources to purchase part or all of your business.
Steps Toward Creating a Successful Exit Strategy
- Understand your business valuation worth. This is a process that calculates the economic value of your business when you want to sell some or all operations.
- Know what professional resources you’ll need to have access to for assistance. For example, a business consultant will choose a qualified chief financial officer to conduct optimal financial planning and management for your business. FocalPoint Business and Executive Coach of Post Falls, Idaho, Keith Atneosen, is both an expert consultant and a certified financial planner!
- Raise your sales profit and revenue to raise the economic value of your company, increasing your buyout worth. Your business consultant will optimize your financial budget, set financial milestones, assess your assets, and organize your sales department to promote commercial growth!
Ready to create a customized business exit strategy plan? Contact FocalPoint Business and Executive Coach Keith Atneosen! Keith Atneosen is the founder of Freedom Summit Consulting LLC, where he assists business owners with preparing to transition the stewardship of their business. Book a consultation by calling 208-508-2416, emailing katneosen@focalpointcoaching.com, or clicking here to take the Business Growth Score assessment!
