EXIT STRATEGY – DO YOU HAVE ONE?

It may seem somewhat premature to think about an exit strategy when you are focused on building your business however, it provides a laser focus like no other.

Why have an exit strategy? There are several advantages:

• It makes you focus on the fact that you must have something to sell- a tangible business and not a just a personality led services business that relies on one person

• It makes you focus on having a product line rather than a single product

• It makes you focus on having a replicable business so that it can attract a suitable buyer

• It makes you focus on having proper and effective internal systems, e.g. accounting systems

• It makes you focus on having a strong and clean profit and loss account and balance sheet

• It makes you focus on having all your business procedures documented

• It makes you focus on having proper human resources processes, procedures and policies including up to date job descriptions and performance appraisals

• It makes you focus on achieving financial results that make the business attractive to a buyer

• It makes you focus on succession plans for key positions when you and others decide to exit

• It makes you focus on your competitors to ensure that you are at the leading edge of your business segment

• It makes you focus on potential purchasers for your business

• It makes you focus on building relationships with potential purchasers long before you want to sell the business

• It makes you focus on the valuation options for your business and deciding on the most appropriate methodology to value your business

• It makes you focus on the value of your business which you should assess periodically

• It makes you focus on the business and economic cycles and knowing when is the optimal time to sell your business

By addressing all the above issues you are in a strong and knowledgeable position to evaluate opportunistic offers, to create a timetable to sell the business in an orderly and professional manner to maximize the price.

Now get to it and get your business in tip top shape and be prepared for anything.

As a career coach Lynda partners with people in career transition, those who want to reassess their career options, get strategies to improve their work performance and employability.

Lynda Aurora FCCA ACA CPA MBA MA-HRM MCC
Asia’s first and only Professional Certified Coach
Member of the International Coach Federation

If you are interested in being coached Lynda can be contacted at: Lynda@LyndaAurora.com