Why do I need an exit Strategy?
'74% of entrepreneurs in the UK risk long-term business success by not giving proper thought to their exit strategies' Deloitte Entrepreneurship: UK 2008
Like anything else you do in life or in business, having a plan increases your chances of success and helps to eliminate or minimise the risk of failure or disappointment. Up until this time, the goals of the business and your own goals, as the owner, have been identical. As you prepare the business for your departure, the business needs to assume an identity and a purpose of its own. Such as the work you do, the functions you perform and your role in the day-to-day decision-making need to be transferred to other competent hands.
In order to secure a good price, you will probably need to make changes to bring the business into line with the expectations of buyers. Some of these will involve people and processes, both requiring time to execute successfully. The exit strategy is about understanding all that needs to be done to maximise the sale price, sorting out the priorities, managing individual projects and initiatives – and at the same time keeping everything running smoothly. It all needs careful planning.