- November 1, 2016
- Posted by: admin
- Category: Business plans, Exit Planning
An exit strategy is absolutely vital for your business from the first day you start planning. It is your endgame, the goal towards which you direct all your operations. It represents financial freedom for you and continuing success for the business you work so hard to build. Learn about choosing an exit path for your business, developing a strategy for the future, and ensuring that your business exit is as successful as possible.
Choosing the Right Exit Strategy
Many small business owners know what an exit strategy is. They even put one together as part of their business plan. More often than not, the biggest problem is that small business owners don’t realize that there are multiple options available to them in terms of the exit path they choose.
In truth, there are four main types of exit path you could take:
- Transfer to children or family
- Sale to employee
- Sale to a third-party
- Sale to a partner or manager
Picking the right one, however, isn’t as simple as most owners would like it to be.
Complications in Picking an Exit Path
You might build a business from the ground up, intending every step of the way to turn it over to your children. You may have had them in mind all along, thinking of their future.
What happens when the day comes and they show no interest in running the business, or you decide they’re not right for it after all? Have you prepared for other contingencies? Like any plan, a business exit path can run into any number of complications.
Adaptation and Adjustment
Choosing the right exit path requires adaptation, adjustment and the ability to shift gears. When you start your business it’s important to have a plan in place, but that plan needn’t be so detailed and inflexible as to nullify any changes or shifts.
You’ll need to carefully consider all your options from day one and consider questions like when you want to leave the company, how much you want to get from a sale, the kind of ownership succession you want to see and a wealth of other factors.
Business Exit Specialists
For many business owners, calling on the services of a business valuation and strategy specialist is the answer to these problems. A consultant of this type has the ability to evaluate your business based on where it sits right now as well as where it’s been and where it’s going. They can help you navigate the waters of building value and adapting your operations to ensure that the path you choose for exiting the business is the right one.
Good exit strategies mean having control over how you leave your business. If you would like more help and information about developing the best possible exit strategy for your business, Schwartz Strategy and Valuation can help. Call Jamie Schwartz today for more information and to steer your company towards continuing success.