Why a Business Exit Strategy is Essential
Filed under: Business Tips
As a business owner, there is a lot of planning and strategy that goes into the process of preparing for the future. You need to be managing the current performance of your company, as well as the direction you are going over the next 1, 5, and 10 years. Do you have an exit strategy in case you need to remove yourself from the company in the future?
A Business Relies on the Owner
It is common for a small business to rely on the owner, which means that the company won’t survive without you. Growth has occurred because of the hard work that you have dedicated to the company. With your hard work and management, the daily, weekly, and monthly tasks are completed.
But, what happens if you need to step away for a little while? There might be times when you can’t be so involved with the company. For example, if an injury or accident occurred or you want to take an extended vacation. You also need to be prepared for a planned exit, such as retirement, passing the company to the next generation, or selling the business because you want to focus on something else.
Preparing Your Exit Strategy
Inevitably, there will be a time when the company will need to be less reliant on you as the business owner. By putting an exit strategy in place, you can still be involved with the company growth. This exit strategy will help you to prepare for the future. Here are a few things that you should consider:
- Cross-Train Employees: If you are gone for a few weeks, are there other people in the office that know how to handle the day-to-day tasks? Cross training staff members will ensure that the business keeps going even if you are out of the office.
- Build Systems: Having systems in place makes it easier for someone to take over a task if someone else is gone. You might even create a how-to manual for details about each of the systems and procedures that your company performs in the course of daily business. These details will allow business operations to continue because other people in the company can understand your role and daily operations.
- Hire Good Management: Instead of handling every problem on your own, make sure that you have good management in place to handle questions and concerns.
Are you ready for more information about taking your business to higher levels of success? Contact Jim McLaughlin for Leadership Development for Business Owners and Managers at: (951) 225-2179
