Key Messages
How To Leave Your Company With A Smile: 3 Steps For Every Great Entrepreneur’s Exit Strategy
If you’re an entrepreneur, leaving your company doesn’t have to mean chaos and instability.
With the right planning and preparation, you can make your exit from your company a legendary, life-enhancing move.
To do this, it’s important to start thinking about an exit strategy now so that you have plenty of time to discuss potential options and make decisions that are best for both the business and yourself.
You should consider selling your stake, liquidating assets, handing over the reins to a family member or employee buyout.
No matter what choice you make in the end, planning ahead will ensure that whatever route you take is smooth, successful and beneficial for all parties involved.
Make your exit from your company an unforgettable transition with a long-term positive impact!
Planning Ahead For A Successful Business Exit Is Essential To Ensure Your Future Success
If you plan to make an exit, it is essential to begin preparing ahead of time.
As a business owner, you need to think not only about what is best for your company’s future, but also how to plan for a successful transition so that you are able to move on with your life.
Ray Pagano is one example of someone who planned and executed his exit strategy effectively.
He started the process two years early, involving himself in all aspects of his company’s operations and formulating specific goals for each department.
By doing this, he not only improved the market value of his company but also set himself up for a successful retirement from it through careful planning and forethought.
Your own exit will likely require similar levels of preparation; think about both your current and future selves when making decisions about your business.
Consider the changes that will take place once you’re gone–and don’t forget yourself!
This way, you can ensure that a smooth transition occurs and look back on your business career with pride rather than regret.
Don’T Make The Mistake Of Ignoring Your Company’S Exit Strategy: Plan Now For A Successful Transition Later
As a business owner, it’s important to be aware that you may not always be in charge of your company.
Therefore, it’s essential to plan ahead and think about the transition you’ll make as you move from business owner to your life’s next phase.
The key is to make sure that the company can run without you.
This means giving other people responsibility and authority to complete tasks and make decisions on their own.
It may take some time for a successful transition period, but if done effectively, your company will be able to thrive in your absence.
For instance, the owner of a meat processing plant made sure he gave his managers more authority and responsibility prior to his retirement so that the company could continue functioning without him.
Taking The Right Steps To Craft A Successful Exit Strategy
A good exit plan has four stages: the exploratory, strategic, execution and transition stages.
In the first stage, you must sort out your priorities and explore your options as to whether you want to liquidate or sell your company.
The second step is the strategic phase where you’ll strengthen your business by pinpointing weaknesses and work to maximize its value.
This can include boosting sales before the sale of it, which can make it more attractive for potential buyers.
Afterwards you’ll enter into an execution phase where you create the deal with potential buyers and possibly liquidate or sell it depending on what was chosen in the exploratory stage.
Lastly, in the transition phase you’ll move onto whatever life has next in store for you – whether that be a new career, retirement or something else entirely.
Don’T Take Unnecessary Risks: Plan Ahead To Maximize Your Exit Strategy
It’s important to determine the best exit strategy for you and your business.
Do you want to sell your business, or would it be better to liquidate?
Selling can be a difficult process as unfortunately, up to 75% of owners who wish to sell never make it onto the market.
Take the example of a bakery owner who spent considerable time and money trying to find buyers with no luck – in the end he settled for less than his business was worth just so he could move on.
On the other hand, if your business is small and mostly there to generate an income for yourself then liquidating might be the more suitable option.
In these cases, potential buyers are generally limited to family members, employees or friends who have an interest in taking over.
Alternatively, if there aren’t any takers it may simply be best for you to continue running your company until you decide it’s time for something else – at which point liquidation can help clear things up.
By Planning Ahead, You Can Strategically Position Your Business For Maximum Value Upon Exit
When you’re planning an exit from your business, it’s important to make sure that you’re preparing your business to be as attractive as possible to potential buyers.
You’ll need to spend time working on things like improving cash flow, customer satisfaction and recurring revenue streams – all of which will be scrutinized by any potential buyers.
For example, if you own a toothpaste company and a market-leading oral hygiene firm is interested in it for expansion opportunities, then you may want to focus on working to increase the growth prospects of your company or make changes to your company’s business model that would appeal to the buyer’s wishes.
By making these improvements, not only do you make the transition smoother, but also add value to your company so that it can get a larger sale price.
The owners of a lighting company that was looking for a buyer worked hard on doubling their sales receipts and adapted the business model based on what they knew the buyer was looking for – resulting in an attractive sale at the end.
In summary, take some time to invest in making your business more appealing so that it will have higher chances of being bought when it comes time to exit your business.
When Selling A Business, Consider Who Will Preserve Your Values And Legacy
If you’re looking to sell your business, one of the most important decisions you face is whether or not you want a successor to carry on your legacy in the company.
Roxanne Byrd, a business owner, faced this situation when she was trying to sell her business.
She discovered that the buyer had an unethical business strategy and planned to mislead employees until he liquidated the assets.
Knowing that she didn’t want this kind of person taking over her company’s culture, she decided not to sell it.
You need to decide if you want a successor who will keep the same values for your company as what you instilled or are you simply looking for someone to cash out and leave? A strategic buyer is someone who owns other businesses and typically installs their own management style into the companies they acquire so everything aligns with their current goals and strategies.
Whether or not there needs to be a successor with these kinds of buyers depends on their plan for the company.
In any case, it’s up to you at final decision as every business owner has their own set of criteria that they should meet in order to make an informed decision about selling their company.
Wrap Up
At the end of the day, Finish Big is all about making sure you and your company are ready when it comes time to leave.
So make sure to plan adequately and thoroughly.
Consider the life you wish to have after leaving, and guide your business through a smooth transition period.
When planned out well,this exit will be good for everyone involved.
Act on this advice by tweaking your company to specifically target potential buyers; increase its market value in order to entice them, as well as tailor it so that they have less work to do once people take over.
By following these steps you’ll have an amazing exit that everyone will enjoy!
