A Strategic Look At Why You Should Develop A Business Exit Strategy Now!
A Strategic Look At Why You Should Develop A Business Exit Strategy Now!
So, with Michael Gerber’s thoughts in mind I would say that whenever you create a business or something that's interesting and useful, you create a business or something that's worth selling. And subsequently, when you're thinking of selling a business or something that's as important to you and your future well being as your business, it's critical to have a well-developed plan firmly in place.
The ending of a business by a business owner is known as an "exit," and the planning of a defined ending is called an "exit strategy," in business terminology. The development of a well thought out and documented exit strategy demonstrates that you are in control of your business, that you're a strategic thinker and planner and goal focused, and that you have a well defined plan for an organized and profitable ending for your business.
Unfortunately there are too many business owners who have not planned for an ownership transition and therefore are jeopardizing the funding of their retirement and/or the future care and well-being of their family and/or others. And the really sad part about this is that this failure to fund a comfortable retirement and other future needs doesn't happen because these owners failed to create value in their businesses. No, it happens because they failed to do the critical and strategic exit strategy planning that would have allowed them to keep that value.
One of the lessons learned as a business coach and that I have tried to pass along to my clients is that if and when they seek angel investors or venture capitalists, those investors will require that them to have a viable exit strategy in place before they'll invest a single dollar. Some business owners who are approaching retirement may want to sell their business to an outsider, a key employee, or to a fellow shareholder or partner. Or, they may want to transfer their interest to children or other family members. But the million-dollar question is: “How can all of this be accomplished?” Well, the million-dollar answer is you must have a well planned and funded exit strategy.
Perhaps you are a business owner who is just now thinking of developing an exit strategy. I applaud you for that. My advice is to do much more than think about doing it. You need to start planning your exit strategy today, keeping in mind that defining it is a strategic planning process that requires careful thought. This type of plan is not done quickly and haphazardly. It is planning that requires some outside advice and effective strategic thinking. From my experience in business coaching and strategic planning, I have found that all strategic exit plans should identify the following:
A current valuation of your business
The major factors that drive the value of your business
Strategic methods to increase your business value
The potential future value of your business
Options for ownership change
Options for funding of the ownership change
Protection/risk management re: the ownership change
Defined tax implications of ownership change.
Potential tax-saving methods specific to your business
The likely proceeds from strategic ownership change
You can ensure a smooth transition and make your business more valuable and desirable with a proper business valuation and some sound exit strategy planning. The strategic exit strategy is a key component of your strategic plan and will provide guidance to you to make the decisions that will position your business to reach your exit goal.
Your strategic thinking business coach encourages you to fully realize the benefits of business coaching to strategically plan for increasing the value of your business and strategically planning for an ownership transition for your business. If you would like to learn more about how a strategic thinking business coach can facilitate and guide you in that endeavor, please contact Glenn Ebersole today through his website at www.businesscoach4u.com or by email at jgecoach@aol.com
A Strategic Look At Why You Should Develop A Business Exit Strategy Now - To learn more about this author, visit Glenn Ebersole's Website.
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I often ask prospective clients if they have an exit strategy for their business. Too often, I get a response that tells me: they do not have an exit strategy; they never thought about an exit strategy; they have one “in their head;” and/or they have one but they have not documented it properly and do not have contingencies covered. One of my favorite authors, Michael Gerber, in his E-Myth books tells us that we create a business to sell it and that if we do not do that, we own a job not a business.
So, with Michael Gerber’s thoughts in mind I would say that whenever you create a business or something that's interesting and useful, you create a business or something that's worth selling. And subsequently, when you're thinking of selling a business or something that's as important to you and your future well being as your business, it's critical to have a well-developed plan firmly in place.
The ending of a business by a business owner is known as an "exit," and the planning of a defined ending is called an "exit strategy," in business terminology. The development of a well thought out and documented exit strategy demonstrates that you are in control of your business, that you're a strategic thinker and planner and goal focused, and that you have a well defined plan for an organized and profitable ending for your business.
Unfortunately there are too many business owners who have not planned for an ownership transition and therefore are jeopardizing the funding of their retirement and/or the future care and well-being of their family and/or others. And the really sad part about this is that this failure to fund a comfortable retirement and other future needs doesn't happen because these owners failed to create value in their businesses. No, it happens because they failed to do the critical and strategic exit strategy planning that would have allowed them to keep that value.
One of the lessons learned as a business coach and that I have tried to pass along to my clients is that if and when they seek angel investors or venture capitalists, those investors will require that them to have a viable exit strategy in place before they'll invest a single dollar. Some business owners who are approaching retirement may want to sell their business to an outsider, a key employee, or to a fellow shareholder or partner. Or, they may want to transfer their interest to children or other family members. But the million-dollar question is: “How can all of this be accomplished?” Well, the million-dollar answer is you must have a well planned and funded exit strategy.
Perhaps you are a business owner who is just now thinking of developing an exit strategy. I applaud you for that. My advice is to do much more than think about doing it. You need to start planning your exit strategy today, keeping in mind that defining it is a strategic planning process that requires careful thought. This type of plan is not done quickly and haphazardly. It is planning that requires some outside advice and effective strategic thinking. From my experience in business coaching and strategic planning, I have found that all strategic exit plans should identify the following:
A current valuation of your business
The major factors that drive the value of your business
Strategic methods to increase your business value
The potential future value of your business
Options for ownership change
Options for funding of the ownership change
Protection/risk management re: the ownership change
Defined tax implications of ownership change.
Potential tax-saving methods specific to your business
The likely proceeds from strategic ownership change
You can ensure a smooth transition and make your business more valuable and desirable with a proper business valuation and some sound exit strategy planning. The strategic exit strategy is a key component of your strategic plan and will provide guidance to you to make the decisions that will position your business to reach your exit goal.
Your strategic thinking business coach encourages you to fully realize the benefits of business coaching to strategically plan for increasing the value of your business and strategically planning for an ownership transition for your business. If you would like to learn more about how a strategic thinking business coach can facilitate and guide you in that endeavor, please contact Glenn Ebersole today through his website at www.businesscoach4u.com or by email at jgecoach@aol.com
A Strategic Look At Why You Should Develop A Business Exit Strategy Now - To learn more about this author, visit Glenn Ebersole's Website.
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
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