A Strategic Look At Why You Should Develop A Business Exit Strategy Now! |
I often ask prospective clients if they have an exit strategy for their business. Too often, I get a response that tells me: they do not have an exit strategy; they never thought about an exit strategy; they have one "in their head;" and/or they have one but they have not documented it properly and do not have contingencies covered. One of my favorite authors, Michael Gerber, in his E-Myth books tells us that we create a business to sell it and that if we do not do that, we own a job not a business. The ending of a business by a business owner is known as an "exit," and the planning of a defined ending is called an "exit strategy," in business terminology. The development of a well thought out and documented exit strategy demonstrates that you are in control of your business, that you're a strategic thinker and planner and goal focused, and that you have a well defined plan for an organized and profitable ending for your business. From my experience in business coaching and strategic planning, I have found that all strategic exit plans should identify the following:
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