When Should You Develop an Exit Strategy? Now…Here’s How



You should always have an exit strategy in place – no matter what.

Whether you’re just starting out or you’re a veteran business owner, you should always have an exit strategy.

Yep. That includes whether you’re a new entrepreneur, looking for an angel investor, or trying to plan for a successful turnaround.

Change happens.

You might hit a tsunami. You might decide to try a different venture. You might want to retire. You might want to pass the business to your children because it’s a mistake to overlook succession planning.

Plus, not to discourage you, but data shows startups often fail. You should plan to create an asset that can be sold as easy as possible.

ID-100214062 Stuart MilesHere are basic tips to start:

1. Business plan

It should contain action-strategies for results.

Involve all logical employees in planning. Include your key performance indicators – measurements to meet operational and strategic goals – from finance to marketing.

That means being strategic.

For additional reading here’s a checklist for success in business planning for the new economy.

2. Financials

You should have superlative accounting system. Use best practices in  financial statements. 

Be sure to know your break-even point and be embezzlement-proof.

3. Operational and other business processes

Be well-organized and documented, and constantly evaluate your policies and procedures. Remember that management best practices include solid operations checklists.

4. Branding and marketing

Measure your brand’s personality. For best results, here are marketing plan essentials.

Don’t forget the importance of being tech savvy and using content marketing.

5. Technology

Be prepared to demonstrate your competence in technology. Be current for your industry and streamline as much as possible.

Make certain your business is prepared with tech precautions and response philosophy.

6. Reputation

Make certain your customers love you and that you use  manage your Web reputation. Take steps to be known as socially responsible and to be known as a green company.

7. Human resources

This is the last tip but quality talent is the most important asset to attract a qualified buyer. Take reasonable steps for excellent employee relationships.

If necessary, use proven steps to improve your business performance and power your brand with employee empowerment.

Take precautions to make certain your stars don’t become free agents.

Every business is different, but you get the idea. Make certain your business performs at a peak level and keep everything documented.

This will insure you receive top dollar if you decide to sell. It goes without saying that you want to be as competitive as possible anyway, right?

From the Coach’s Corner, here are more tips:

11 Sales Strategies to Outsell Your Big Competitors — Big companies have obvious advantages over small businesses. Their brands are well-known. They can afford sales training, sales-support staff and customer-relationship management software. On the other hand, there are good reasons why Cyber Monday has become big. Yes, many online customers do it to save money on sales taxes.

Sell Ideas to Senior Executives, Tap into Their Emotions — If you want to persuade a senior executive, polish your soft skills. Whether you’re trying to sell your ideas to your CEO or you’re trying to sell to a key decision maker at another company, big data is important. But data isn’t the most important factor in persuading senior executives.

 “Affairs are easier of entrance than of exit; and it is but common prudence to see our way out before we venture in.

-Aesop


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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.





Photo courtesy of Stuart Miles at www.freedigitalphotos.net

Seattle business consultant Terry Corbell provides high-performance management services and strategies.