Running a business is like steering a ship through unpredictable waters. Even if you don’t plan on selling your business anytime soon, there are solid reasons for succession planning before exit planning.
For SME business owners, succession is about removing yourself from any day-to-day roles, while exiting is about a transfer of ownership. It’s not just about selling; it’s about future-proofing your livelihood. Let’s explore why being exit-ready is a smart move, even if you’re not eyeing a sale right now.
Guarding Against the Unexpected:
- Life Happens: Unexpected events like illness or accidents can disrupt your plans. Ensuring your business is exit-ready means it can continue sailing smoothly even if you need to step away unexpectedly.
- Plan B in Action: Think of it as a backup plan – something you hope never to use, but it’s there to keep things afloat during challenging times.
Seizing Surprising Opportunities:
- Unexpected Good Deals: Being exit-ready positions you to capitalise on unexpected favourable offers. If someone presents an offer you can’t refuse, you’ll be better equipped to grab it before they move on because it is taking you too long.
- Boosting Business Worth: A well-prepared business not only looks good but also tends to be more valuable. It’s akin to having a well-maintained car – people are willing to pay a premium for it.
Making More Money and Easing Your Workload:
- Profit Boost: Exit-ready businesses often discover ways to increase revenue. This translates to more money in your pocket and a healthier financial position if you decide to sell.
- Less Hassle: Preparing for an exit often involves streamlining your business operations. Less hassle for you means more profit for your business.
Balancing Work and Life Without Stress:
- Time for Yourself: Exit-ready businesses free up your time. Instead of drowning in day-to-day tasks, you can focus on the big picture and carve out personal time.
- Stress Buster: Less time spent stressing over minutiae leads to overall reduced stress – it’s like lifting a weight off your shoulders.
Keeping Your Team Happy and Motivated:
- Steady Ship: Employees appreciate stability. Knowing that the ship is well-prepared and adaptable fosters a motivated and content team.
In summary, being exit-ready isn’t just about selling; it’s about safeguarding your business, maximising opportunities, and maintaining a healthy work-life balance.
Get support from Succession Plus for your succession planning. Benefit from our experience in guiding business owners. Contact us for a free consultation to create a lasting legacy.
