Every entrepreneur MUST plan for the end while planning for the beginning. Did you know that only 6 out of 10 successful businesses ever sell? The reason is that without a strategic exit plan the entrepreneur doesn’t have an end game and the patience to see it through. By closing the door on a business that is still making money, people are left unemployed, vendors are left without services, and customers have to look elsewhere and the entrepreneur’s blood, sweat and tears were of no consequence.
Smart entrepreneurs grow their companies with an eventual sale in mind. For example, if the sale is planned to family members the appropriate legal and financial documents are developed a long with the business so there is a clear vision for all those involved in the business. If the exit depends on a sale to an outside party, then the entrepreneur must realize that a contract to stay with the company after the sale will most likely be part of the sale. Just understanding and planning for exit scenarios can guide an entrepreneur to a successful sale. A successful exit can happen if planned for early and tweaked when market influences are required. Use your advisors – legal, accounting, financial and entrepreneurial coaches – wisely and you’ll exit on your own terms.