Every business owner needs an exit plan - now! Almost weekly, I encounter business owners who could have been better positioned to sell their business for a higher price if they would have had a properly executed and documented exit plan. No matter where you are in your businesses cycle, whether you are just starting or have grown exponentially, it is imperative that you plan for your businesses exit and understand your options to increase and maximize your businesses value.
Simply put, exit planning is the preparation for the exit of a business owner. This could be for retirement, health reasons, or to pursue other opportunities. Whatever the reason, every owner or management team needs an exit plan. Life and business are both unpredictable and you need a plan to deal with this unpredictability! No matter your time horizon to sell your business, the time to start planning is now.
A Business Exit Plan from John takes the business owner and management team through a series of exercises and questions to examine the businesses current operations, current business value, and the businesses current marketability. From these exercises and questions the business owners and management team are given a complete step- by- step road map on items needed for improvement in order to maximize the businesses value for an exit on the owner’s terms.
If your business does not have a business exit plan you’re not alone. If fact, most businesses do not. Without an exit plan, you’re potentially leaving hundreds of thousands, and even in some cases, millions of dollars in business value on the table when you go to sell your business.
Even if you’re not thinking about selling your business in the near future, a few changes today could yield a substantial increase in valuation in the future. An exit plan is a solid investment, I’ve seen businesses with exit plans sell for as much as 25% more than businesses without an exit plan.
No matter your business, no matter your industry… don’t neglect this critical aspect of businesses health - it will cost you dearly when you go to sell.