Stephen Covey taught us to begin with the end mind when deciding want steps to take in our decision making process. It is even more important when building your business.
Often the day to day events can consume even the busy business owner. Planning for succession unfortunately takes a back-seat.
As a result, the end in mind strategy is lost and exit planning strategy is often postponed. Business owners inherently believe there is plenty of time later to ”think-up” an exit strategy.
The problem is that without a formal exit plan, wrong decisions can be made that reduce your company’s value or eliminate viable exit strategy options.
Today, many business owners are building companies to sell. They focus on factors that enhance the exit process. The best advice is to ensure you have a balance between the present and the future. What is your vision for the business, and when will you know you are done? How will you leave the business on your terms? And how will your family and you benefit from your hard work and risk?
Many options exist. Are you considering leaving the business to family members, going public, selling it to employees, or to a private equity group or strategic corporate acquirer?
In the beginning a natural tendency is to have a very short time horizon – next payroll, next tax payment, next customer, and next month. But to realize a successful (and earlier) exit, the business owner needs to keep his or her eye on the ultimate sale of the company. More important creating and implementing an exit plan builds value in the organization.
Begin with the end in mind. Talk with Ohio business coach and Certified Exit Planning Advisor, Ralph Berge. Call him 440.838.0991.
