You are a successful businessperson, and through either determination or sheer luck, your business has grown to be bigger than you ever dreamed. You and about 90 percent of the American private sector have made this country what it is today:
A place where an individual with a dream can make it happen if they work hard enough.
When you realize it is time to let the business run itself, it can be hard to know if you should go through with it. When it comes to business exit planning, it can be difficult to let go of the company you built. But consider these key benefits if you are on the fence.
Business Exit Planning Benefits
Business exit planning can seem nerve-wracking but take heart, it’s not as bad as you think. Keep these seven key benefits in mind when you’re considering the option of exiting your company correctly.
1. Gives You Control
As the owner, you control the fate of your company with a good exit strategy. You are at liberty to establish goals for your company and begin to implement them before you leave so that your company is on the right track.
2. Your Business Will Be Less Dependent on You
You want your business to be a self-sufficient, well-oiled machine. However, sometimes the business is too dependent on its owner. Creating an exit plan can help get the business to self-sufficiency.
It will allow you to progressively wean yourself from the machine and bring others to fill the roles you filled, adding diversity.
3. Your Business Will Be More Resilient
With diversity comes resiliency. When a business has multiple streams of ideas and input, it makes the business less susceptible to market pressures that could cause it harm.
As the owner, you want to hedge your risks. This is a good way to do it to protect yourself from industry downturns or economic recessions.
4. Makes Your Business More Attractive
Investors love to see when a company has a game plan. And coupled with the previously stated tips, this will make your company look extremely attractive to potential investors.
Investors don’t want to put a stake into a company that cannot work on its own.
5. You Will Be Prepared to Leave
We get it, sometimes it’s hard to leave a company that has become your heart and soul. You’ve spent endless hours and capital to build it up. And now you have to let it go.
But an exit plan will help you also wean yourself off the business, and remind yourself of the goals for the future of your business after you’re gone.
6. You Learn Your Company’s Worth
During this process, you will be able to truly appraise your company through the offers of various investors. This will help you to weed out mediocre offers and set up your company to continue into the future.
7. You Gain a Clear Vision for the Future
With all of these in mind, a simple exit strategy will gear you toward the future by building a good support network within the company. It also helps you build a good investment/buyer pipeline outside the company.
Exiting Doesn’t Mean Leaving
Just because you are exiting doesn’t mean you’re leaving. Your company can be set to thrive with business exit planning. You will be able to help it stay afloat and create something great without you physically being there. It is time to exit right!
Also consider that sometimes it is best to quit while you are ahead, or to take the money and run. There is no shame on that, and it opens the door to new business opportunities.
Set your company up for greatness in the future, it is your baby after all. You want to see it win long-term. For these and other business articles, take a look at the rest of our blog.