What is an Exit Plan?
Having an Exit Plan has increased since the early 2000’s. Studies identified the looming mass retirement of the Baby Boomer generation. There is a considerable ownership transition implications for the owners of small businesses:
- A large proportion of entrepreneurs plan to rely on proceeds from the sale of their businesses to fund their retirements
- There is the likelihood of a severe shortage of qualified purchasers for these businesses
- Only a very small percentage have any specific plans about how and when they would exit their business; and
- A general lack of acknowledgement of the problem and its likely consequences exists at an individual level
Are You Exit Ready?
Since the initial research, the post-2008 global financial environment forced many to put retirement plans on hold. Yet, as we look forward over the next decade, these trends are expected to persist, perhaps with greater severity.
It seems that the majority of small business owners are ignorant of what an exit plan is. Some are dismissive of it. Either way, many run the risk of severe disappointment in a few years, unless they take action. The fact that you are reading this is a big step in the right direction.
Introducing the exit-planning concept aims at encouraging business owners to put in place structures and strategies that result in an abundance of exit-ready businesses. An exit-ready business gives its owner and other stakeholders a broader range of choices. It significantly increases the likelihood of securing the right successor when the time comes.
Value Drivers
Part of a good exit plan requires an alternative perspective of your business:
- Look at your business from different angles.
- Understand key value drivers
- Introduce many of the core concepts involved in the transition of ownership
Change your approach to your business means you can change outcomes for the better. Each individual’s expectations and circumstances are unique. Success is therefore defined on one’s own terms and not by others. Reinforcing the need to consider the many and varied stakeholders and facets involved in planning for the change ahead.
Avoid Disappointment
The suggestions contained within this website have the potential to transform your business. They maximise the probability of achieving your post-business goals and dreams. To avoid being one of the disappointed statistics apply what you learn and work towards your own effective, successful exit.
