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. Think of it as an opportunity.
Yep. That includes whether you’re in a weak economy and a new entrepreneur, whether you’re looking for an angel investor, or trying to plan for a successful turnaround.
Change happens.
You might be 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.
Here 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.
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 for small businesses.
“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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