The biggest mistake sellers make is that when they are first starting out they do not plan their exit strategy and fail to determine a desired sales price. There are millions of baby boomers planning to retire but unfortunately the majority will not be able to sell their business for what they need to enter the next chapter of their lives. Many will end up selling for pennies on the dollar, closing their doors, or filing for bankruptcy.
POSSIBLE EXIT STRATEGIES
There are several possible exit strategies:
(1) Pass it on
(2) Sell
(3) Go out of Business
(4) Forced to Quit (Legal, health etc.)
(5) Choose to quit on your own terms
Which is the obvious choice for you?
BUSINESS EXIT
PLAN QUESTIONS
Here is the most important question you need to ask yourself: “What will I do when I sell my business?” Business exit planning is very difficult when you don’t have a beginning strategy. Just like empty nesters who are figuring out what to do in the next phase of their lives, business owners need to know what they will do after selling their business. You need to write a new chapter for yourself, regardless of whether that chapter is entering into your retirement phase or creating your next masterpiece.
HAVE THE POWER TO CHOOSE YOUR BUSINESS EXIT STRATEGY
When focusing on how to build your business to sell one day, you need to have an end game as well as a desired sales price in mind, so that you can devise a plan and reverse engineer it to achieve your objective.
How you can do this as a business owner is to focus on the 6 P’s™: People, Product, Process, Proprietary, Patrons, and Profits. Do you have the right team in place? Keep in mind that buyers want a business, not a job. They key is to make sure your business operates under a strong management team.
No man is an island, and a business is a machine. One single person cannot be expected to make all the individual parts work together. Each has to hold its own. Ask yourself if your business is strong enough to sustain itself if you leave for a couple of days, weeks, or months. If the answer is yes, then you are on the right track to ensuring that one day your business will indeed sell for its optimal value.
AS INTERVIEWED AND FEATURED ON
THE EXIT RICH™ BOOK
EXIT RICH™: THE 6 P METHOD TO SELL YOUR BUSINESS FOR HUGE PROFIT
In Exit Rich™, Michelle Seiler Tucker, #1 bestselling author and leading authority on buying, selling, fixing, and growing businesses, joins forces with Sharon Lechter, finance expert and co-author of Rich Dad Poor Dad, to create a must-have guide for all business owners – whether they’re gearing up to sell a business now or just starting to build out their company – to sell for huge profits in the future.
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