Exit Strategy – Timing

 

I know that most people reading this article are struggling with how to make it through the day or month. Most of you have great ideas and keep refining your processes and procedure – which is a good thing. Others are probably struggling with cash and how to get more cash. Do not ever forget “Cash is King”.

So why would this article be about an exit strategy and the timing of the strategy?

The answer is simple: you will not own this business forever and the exit will be the biggest liquidation event of your life. Some of you that are serial entrepreneurs may actually have a string of events in your lifetime.

So, when should you think about the exit? Right when you are preparing your business plan. As a part of your business plan, you should be thinking about how you will make money, who your customers will be, marketing, how you will price your products, what geographic area you will sell it in, the types of people you will hire, both staff and management, along with other considerations – but also how you will exit and capitalistic on your efforts.

All the infrastructure that you build in your business is worth a lot of money to buyers. It is the intangible value that gets sold with the products and services you develop and profit from annually. The intangibles that go with a going and profitable business can be worth big dollars to a buyer.

During the next several years, the “baby boomers” will be transferring or selling their businesses (“exits”) – plan ahead, whether you are selling or buying.