How To Develop Your Best Exit Strategy ...(ies)!
For any business owner, exiting the industry becomes a “where do I even start?” situation. It’s complicated, confusing and often carries some negative connotations that aren’t necessarily true. Exit strategies are important to have for investors and business owners alike (and they’re often one in the same!) because no one wants to work forever. Enacting an exit strategy doesn’t necessarily mean retiring, either — plenty of people have successful careers after exiting one business and moving on to another.No matter why you choose to exit a business, there are good ways and bad ways to tackle your exit strategy. Consider these tips when planning for the future.
How To Properly Develop An Exit Strategy
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Talk to Trusted Advisors
Don’t go into developing an exit strategy alone. In an effort to cut corners, many owners choose to forgo hiring advisors to help with developing an exit strategy. It’s not as easy as just selling your business — and advisors can help you navigate the pros and cons so that you can develop the best strategy for your unique situation. There’s selling to private individuals, going public, liquidating, gifting or other plans of succession to consider, and how to achieve those different routes.
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Fully Realize Your Goals for the Exit
What do you want to do after you’ve executed your plan? If you’re ready to exit, is it because you have money to retire? Is it because you want to move on to a new career? Not only do you need to have goals and plans in place for the exit strategy well ahead of time, but you need to think about your life goals beyond the exit.
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Understand that Your Exit is a Process
When it comes to your exit strategy, you have to understand that it’s not a singular event — it’s a process. You don’t sell and sign your name and call it quits. You need alternative strategies, you need to ensure management is strong for your departure, meet value and revenue goals, consult with different advisors, and set many, many different components in motion to ensure the transition is smooth.
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Exiting Isn’t Giving Up
How you think about your exit strategy is important. It’s not giving up, throwing in the towel, or indicative of any failures on your part. Your exit is the beginning of a new chapter. Don’t be discouraged by your exit and instead frame is as opening up new opportunities for yourself. You’ll be able to see and plan more clearly when you don’t feel like it’s simply accepting defeat.
When do you plan to deploy your exit strategy? Share your tips and experiences in the comments.
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