Let’s talk about something you might not want to think about but absolutely should—your business exit strategy. If you want to hear more, check out the latest episode of the Business Owner Breakthrough Podcast.
The Inevitable Exit
Look, no one runs a business forever. Whether you sell it, pass it on, or close shop, you’ll exit one day. Being prepared for that day is crucial. Why? Because life happens. You might get sick or face other unexpected events. So, let’s get ahead of the curve.
As someone who’s helped people buy and sell businesses, I can tell you it takes 18 to 24 months to prepare and sell a business. If you’re the decision-maker for everything, your business won’t look appealing to buyers. They want a business with systems and people in place. That’s how you get the most value.
The Real-Life Example
Imagine an auto repair shop owner who’s doing great but gets sick suddenly. Because she didn’t plan, her business suffered. She had to sell it for less than it was worth. Don’t be that person. Planning now saves you headaches later.
Align Your Wants
You started your business for a better future, right? Knowing your exit strategy helps you make better decisions today. Whether you’re looking for a big payday or treating your business as an investment, your end goal shapes your current actions.
The 5P’s and CPA
This is where my concept of the 5P’s comes in. Align your Product, Process, and People to your Promise to make the right Profit. And don’t forget CPA—Communication, Process, and Accountability. These are the building blocks for a smooth transition.
A plan is just a plan until someone takes action. Identify key roles in your exit plan and match them with people in your organization. Train them, not just in technical skills but also in soft skills like communication and decision-making.
Once your team is trained, start delegating. Test the waters with smaller projects. This gives you time to course-correct and them the opportunity to grow.
- An exit is inevitable.
- Align your wants and wishes.
- Assign accountability.
Don’t let another day go by without thinking about your exit strategy. If you need help, head on over to speaktopete.com and book a free appointment.
Remember, you’re not just building a business; you’re building a legacy. A well-thought-out exit strategy is a key part of that legacy.