An exit strategy business plan is something that should be part of your business planning process. When you build this part of your business plan you need to understand that plans change and the more flexibility you build into your plan the better off you will be.
I believe that having all five options open for leaving your business is always a good idea. If your business is saleable to a third party you should run your business as if you are going to leave it at all times. You never know when that offer that is too good to pass up is going to come along. If you plan to either keep your business forever or transfer to managers or family there are other strategies you might want to pursue.
If you’re over fifty years old the reasons below are really important. Some of the reasons you should include an exit strategy as part of your planning process are:
- It gives your management an idea of what you’re thinking about and they can plan they’re future.
- It allows you to communicate your goals for building value throughout your organization.
- It forces you to think about what you need to do in other parts of your business for any of your exit strategies to work.
- It allows you to communicate how your exit strategy works with the mission vision, values and goals of your business.
- It allows you to tie in your key performance indicators and drivers to your exit strategy.
Communicating what your plans are and your preferences allows you to have programs in place to grow your business and add value for all who work with you. If your goal is to sell to a third party you will want to build a program that rewards key people who help you get to that goal.
If instead your goal is build your business so you can change your relationship or pass the business to key managers or family a completely different strategy might be appropriate.
The key under any circumstance is to let your key people know what your intentions are. Keep in mind that you have the right to change your mind about your exit strategy goals and that can always be updated as you keep your business planning current.