Apply the best strategy for your business
There comes a time in the life cycle of any business when it’s time for a change in ownership.
There are many reasons this change might be needed, sometimes it’s an occasion to celebrate and others it’s more somber, but having the right exit strategy in place is important for business owners looking to cash out, pass on their company or get out of a bad situation.
I have worked with businesses of all types, sizes and industries as a business coach in South Florida, including the areas of Boca Raton, Ft Lauderdale and more. As a business coach, I use my experience building and scaling companies to help an owner reach their goals.
Sometimes, those goals involve creating an exit strategy to remove themselves from ownership of the business. Whether an owner is looking to exit immediately, or wants to create a long term plan to exit the business, understanding the circumstances surrounding the sale of the company is key to creating the right exit strategy.
Some business owners only consider an exit strategy after their company has grown to a sizable enterprise, but the most successful owners conceptualize an exit strategy from the moment they begin their initial business plan.
Understanding your own personal goals for the business is key when determining your exit strategy.
If you want to build an enterprise you can possibly pass down to future generations, your exit will likely happen when you step down and your strategy will involve who takes on what roles and how the company ownership is split.
Some entrepreneurs start businesses with the idea of maximizing their income potential, and if you fall into this category you can determine the point at which a potential sale of the company could be the most profitable. This could be determined by an amount of revenue, number of locations or other industry-specific variables. If a business grows to be very large, the possibility of an IPO is an ideal exit strategy for its owner.
Exit strategies are very important to people who are not the sole owner of their companies. When you have partners, a clear line of succession must be established in the event one of them wants to exit the business. To avoid vast legal complications, these plans are typically laid out in the company’s founding documents.
Sometimes, exit strategies are necessary when a company is struggling. For a business owner who can’t seem to break even and needs to minimize their losses, selling the business to a new owner can be the best way to exit the business before it becomes bankrupt or the owner has to use their own capital to keep it afloat.
No matter what stage your business is in, it’s never a bad idea to keep an eye on the future and plan for your eventual exit. If you can use help in this area, or if you’re in South Florida and have a need for business coaching services, please feel free to call me or complete the questionnaire on the website to get started today!
