When you start a business, your first responsibility is to create a comprehensive strategic plan to add structure to your company or organization. Strategic planning affirms the business owner’s long-term goals and vision of the company, assesses the business’s current organizational and operational departments and structures needing improvement, and tracks growth. However, when people conceptualize the strategic planning process, they often think of the path to commercial success – an exit strategy is a component of a strategic plan! Having an exit strategy will give you more clarity on the future of your business.
What Is a Business Exit Strategy?
A business exit strategy is selling your business to investors or other companies, passing your business on to a successor, or pursuing an employee or management buyout. Developing a business exit strategy helps you get the most financial return and value when you sell your business and reduce potential losses. For entrepreneurs, the optimal path to retirement hinges on having an effective business exit strategy.
The Benefits of Developing a Business Exit Strategy
- It functions like your strategic plan where you’ll have clarity on how you want to operate your business. Having an idea of how you want to leave your company will keep you focused on achieving your long-term professional goals.
- It will motivate you to strive for higher company productivity, find cost-effective solutions to challenges, achieve higher sales and revenue goals, and more. Your business valuation process to determine the economic worth of your business will hold you accountable for sustaining high work productivity and commercial growth.
- You will feel less pressured to consider random offers from investors and other potential buyers with buyout offers. With our business exit strategy in place, you’ll know when you’re ready to sell your business and the acceptable offers you’ll consider.
- You will have a strategy in place when sudden changes and challenges occur. If you can no longer physically work, if your business experiences a significant commercial decline, or if something else causes you to be unable to operate your business, you’ll be able to cut your losses.
If you reside in the greater Post Falls area including Spokane Valley, Coeur d’Alene ID, Hayden ID, or are an international client, contact FocalPoint Business and Executive Coach of Spokane, WA, 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. Keith is also the author of the book “The Life in Your Years,” which discusses stewardship and legacy planning. Book a consultation by calling 208-508-2416, emailing katneosen@focalpointcoaching.com, or clicking here to take the Business Growth Score assessment!
