A comprehensive business plan also includes an exit strategy, according to Entrepreneur. A proper exit strategy places you and your business in the best possible position to maximize the financial return on your company.
Do you have a business continuity Exit Plan in place? If you own your own business and you fell ill for an extended time period, or you were gravely injured or disabled, what would happen to your business?
What if you died suddenly? Are you the one your suppliers and customers count on to do business with personally? Are you the only one with the complete knowledge of proprietary processes or formulas?
Would the bank deal with anyone else on your staff if your financing was in jeopardy? If you have a detailed business continuity Exit Plan in place, you can go home at night knowing that no matter what happens to you, your business will survive and, hopefully, thrive.
A good business continuity Exit Plan ensures that others on your staff are cross-trained in the essential information that will keep the business running as smoothly as possible without you. Even your suppliers and clients will appreciate knowing that a team of people stands behind your services and products, and not just the owner.
If you let your customers know that you are well-prepared for emergencies, it may give you an advantage over your competitors. Your business continuity Exit Plan should go further than just planned coverage for you, the owner. It should also include detailed planning for replacement of any key staff member.
Many of my clients complain that too much of their time and energy goes into covering for employees who leave the job without warning.
Your expertise can be better used. A well-thought-out business continuity Exit Plan is an invaluable resource at that point in the future when you decide to voluntarily exit your business. You will already have laid the groundwork by cross-training a good management team to carry the business through the transition to new ownership.
The existence of a team already trained to run your business adds value to your business in that when you do sell it, it will not be losing one of its key assets — you! Get a solid business continuity Exit Plan in place for your business now, and save yourself and your staff unnecessary anxiety about the unpredictable future.
For more information on Exit Planning, including articles that can help you maximize the value of your business, please visit the Exit Plan Pros website at:In the same way that not every startup needs to raise money from VCs and business angels (bootstrapping is a viable alternative), not every startup needs to sell itself to a bigger company to provide a return to founders, employees and investors.
Exit Plan As Omni reaches “the aforementioned levels of profitability, several lucrative exit scenarios become realistic including the opportunity for acquisition by a major record company and, depending on investor preferences, the ability to liquidate ownership positions (r-bridal.com).
Business owners need to plan the sort of exit they hope for early on and treat exit options explicitly as part of their initial business plan. Whether owners are looking to sell outright, be acquired by another company, go public, choose simply to liquidate, or let the business run dry matters.
The exit strategy is actually a plan to redeem the company from its original investors so they can realize their 10 lbs. of flesh for taking the risk in starting or growing your company. Small Business Center: What is an exit strategy and do most small-business owners have one?
John Leonetti: An exit strategy is a plan, ideally in writing, for an . Even lifestyle entrepreneurs can decide that enough is enough. One often-overlooked exit strategy is simply to call it quits, close the business doors, and call it a day.