A successful business exit hinges on excellent preparation and planning: excellent timing influences the results you’re seeking from your business exit. Considering your business exit into your overall business management and development as soon as possible, as well as:
- Setting an exit date goal
- Creating stipulations for passing down a family business or to a successor in case of an involuntary business exit
- You’ve considered other life or career endeavors
These are all significant time-relevant elements to consider when exiting your business.
Start Considering Your Exit Plan Now
We may overlook planning our exit now because we think life after our careers is thinking too far into an unforeseeable future. However, we must strategize early for better exit readiness, higher chances of total success, and guaranteed security.
Additionally, making the improvements to your business now will pay off later: improving your business value, increasing profitability, and developing the next leadership are essential in staying competitive for sustainable growth, but also earn you the attention of top investors, prospective buyers, and prospective strategic partnerships now as your business becomes more valuable in the market.
Exit at the Top of Your Game
Many entrepreneurs set a final revenue to achieve or seek to achieve a certain number of years in business to initiate their exit. Planning your exit when you’ve reached optimal valuation for your business is excellent for securing the most financial return. Or when you’ve developed optimal business operations and cultivated a high-achieving management and leadership team where your presence is not necessary for your business to run smoothly.
Early Preparation Optimizes Conditions for Your Successor
Choosing a successor or passing down your family business can drastically transform your business – the timing and the preparation determine how effective your successor will be in owning your business. Business owners must record and clarify their stipulations and wishes in a succession or legacy plan when giving their business to a successor in an involuntary business exit.
For succession, by training your successor in business fundamentals before the actual transfer of ownership, they won’t be blind-sighted by their new responsibilities.
When passing down the family business in an involuntary business exit, it’s critical to include stipulations to avoid your successor being blind-sighted with inheriting a business without proper training. For example, you may state in your legacy plan a specific date to allow the inheritance or that your familial successor must complete leadership development training and business coaching before they can successfully inherit the business.
Exit When You’ve Made Plans for the Next Season
For many entrepreneurs, their business has been their priority. It’s beneficial to consider other life or career pursuits and endeavors to stay driven and fulfilled after selling the ownership of your business.
Entrepreneurs who wish to secure their future and the future of their business in the next season can book a consultation with me today.
