Don’t Risk the Future of Your Business by Dismissing this Critical Plan

Exit Planning isn’t the dirty word people think it is.

Contrary to what some people might believe, preparing an exit plan is not a traitorous act. It doesn’t mean you are bailing out or planning a double homicide for yourself and your business! In fact, an exit plan, done early and done right, can help ensure your business will survive long into the future - even without you at the helm.

To leave this type of lasting legacy, you need to start building a business that will operate without you. This doesn’t mean you’re not passionate about what you do. But by taking yourself out of the day-to-day, you’re allowing your business to grow independently from you, reassigning your passions to more profitable areas of the company. 

There are many benefits associated with an owner-independent business. 

Avoid the Bottle Neck

You can quickly scale your company if you’re not acting as the bottleneck.

If you’re signing off on all the decisions, then you’re creating a company completely dependant on you. While it’s good for your ego, it’s not so good for the business. To pull out of operations, you need to empower your management team to feel confident in fielding all but the absolutely vital decision-making. 

Besides hands-on training, you can also write down detailed instructions and processes your team can execute on certain tasks, without your input.

Need ideas on how to set up systems, processes, and guidelines? Here’s a quick checklist of 25 Different Formats to Improve Your Business Systems and Processes.

Work ‘On’ the Business Rather Than In It

Without the time constraints associated with managing the day-to-day, you’ll have more time to strategically plan your roadmap. This will help you drive growth and make your business more valuable, taking it to the next level while continuing to invest in people, systems, and processes.

And by focusing on the key drivers of company value, you’ll be able to build a business with the end game in mind. 

Want to know more about the 8 Core Drivers of Business Value? We have a complimentary tool that will help you rate your business on these 8 Drivers. You can access it here. Over 55,000 businesses have already used the tool to get clear on what's driving up (or inhibiting) the growth and value of their business. 

Build a More Valuable Company

One of the biggest reasons you should start creating autonomy in your business structures is that a company that runs on autopilot is highly sought after by buyers, and they are willing to pay a premium to find one.

On the other hand, a company that requires hands-on involvement from its owner is likely to result in a heavily discounted offer. This is because an acquirer wants to know that the successful business you’ve built will continue to be successful when you’re long gone. A business that relies too heavily on one person is not a sound investment.

So, while it can be tempting to run your company as your own personal fiefdom, the sooner you get it ticking along without you, the faster it can scale into something irresistible to a potential buyer.

Pulling yourself out of the day-to-day operations of your business is easier said than done.

Yet, if you believe your company has something to offer this world, getting your company to run without you will not only protect your employees and your clients in case something happened to you, but it will protect your family and your legacy by creating a scalable, investor-friendly company.

Rather than saying it quietly under your breath, it’s time to bring Exit Planning to the forefront of the conversation. 

The ultimate freedom is to own a business that’s valuable, scalable, and saleable.

Design your business so it's easy to run, doesn’t hinge on you showing up every day, and will sell for a premium when it comes time for you to move on. 

WHO WE HELP

At Exit Advisory Group we work with entrepreneurs who have been in business for a few years and are looking at the next steps.

• You may want to know how much your business is worth because you are thinking of selling (or scaling)
• You may be considering a partnership buyout, management buyout, or a capital raise
• You may want to step out of the day-to-day and hand the reins over to management
• You may have a specific valuation in mind for your business and you need a game plan to achieve it
• You may want to get your business ‘exit ready’ so you can transition out at any point in time, for maximum value.

If that resonates with you, and you need help, let’s start a conversation.

Shoot us an email: [email protected]

Or call us directly 1300 133 540

Not ready? Learn more about us here: www.exitadvisory.com.au

I also welcome you to follow our Exit Advisory Group Business Page on LinkedIn for more insights on how to build a valuable business and exit on your terms.

https://www.dhirubhai.net/company/exitadvisorygroup