Building an Exit Plan

A few weeks ago, I hosted a webinar discussing why 80% of all businesses fail to sell and what can be done to avoid that outcome. You can access the replay here if you missed the event and are interested in the topic.

Since then, I have been reflecting on the various businesses I have started and sold over the years and have had to confront a hard truth. I realise that I left money on the table with each business I sold.

Yes, I beat the odds and successfully sold all my businesses, but the reality is that I could have done much, much better. When we sell a company, we cash in on all the hours, stress, and risks we endured over the years. That’s great, but it’s not enough.

I could and should have sold each of the four businesses I sold for more than what I did. I sold these businesses due to either good timing, good luck, or because someone came knocking. Each sale was an opportunity that I managed to capitalise on.

The truth is that I sold when the opportunity arose, not because I was executing a well-planned strategy.

Had I followed a well-executed Exit Plan, I would have told a different story today. Maybe some of you are like me. I was so busy running my business that I didn’t have time to think about an Exit Plan. That was a task for tomorrow, while I had fires to extinguish today. I would think about selling when the time came. Here’s the thing, though.

What if you choose to sell because someone is knocking on your door? After all, this opportunity doesn’t come around every day.? They aren’t waiting for you to pull together and execute an Exit Plan. They will move on to the next best competitor.

What if changes in your business force you to sell, not because you want to, but because you have to? It could be due to unforeseen events (COVID-19, the GFC, the 2001 Dot Com bubble).

It could be a competitor, your health, a divorce, partnership issues, your age, or, as is often the case, burnout. Before you know it, the time to sell can be upon you, and you need to prepare to maximise the sale value.

If you sell your house (probably your next greatest asset), you will likely tidy it up, slap on a coat of paint, and do those small renovations you have been putting off. Once you make those changes, just before you sell the house, don’t tell yourself, “Man, this place is great now. Why didn’t I make those changes earlier?”

It’s a bigger job than a quick paint job.? Also, had you made those changes earlier, you would have enjoyed those benefits much earlier.? Those changes make your business a better business.

Create an Exit Plan now and integrate it with your Operational Plan. The two go hand in hand. One plan complements the other as long as they co-exist. A sellable business is a better business.

Implementing an Exit Plan today benefits your business because it becomes more profitable, scalable, and efficient. You reap the rewards of an enhanced business designed to maximise the chances of being sold and the amount you can get when you eventually sell.

If you want to learn more about creating your Exit Plan, please get in touch with me. I’ve learned from past experiences and after selling my last business, I became a Certified Exit Planner.

I combine my hard-won entrepreneurial experience with the tools, resources, and knowledge necessary to help owners create a better, more sellable business.

Together, we can ensure your business is a sellable asset, achieving the highest possible price and creating the legacy that you worked so hard to achieve.