A business owner I’ve known for quite some time has been talking about having a five-year exit plan for at least the last eight years, although he’s done little about it in practice. This is not unusual. Many business owners know what they want to achieve, but making it happen is not easy, and this is where a business mentor or coach can be useful.
It’s never too soon to plan your exit; the sooner, the better, because the chances are you will leave it too late to maximise the value. One of the biggest challenges for a small business owner is identifying someone who can take some leadership responsibility. Trusting them and letting go is another challenge. However, if you are the main person in the business, working ‘in’ the business rather than ‘on’ the business, this will seriously reduce the value of the business. Without you and the relationships you have built, the future growth of the business will be limited and, therefore, reduce the saleable value.
It may be that a family member is waiting to take hold of the baton. While it’s what many business owners hope will happen, if the successor has not worked on developing the skills necessary to make important strategic decisions, he/she will likely fail. Similarly
If you are hoping to sell the business, there are many options to explore, and there will be a time to bring in lawyers and accountants, all with big numbers in mind, including their fees, and you can’t do it without them. However, before you get to that point and while you have time to pace yourself, focus on getting the right people in the right seats and work towards having a back seat for yourself.
This is typical of the many conversations in our peer support group – ‘Those Who Lead‘. To find out more get in touch kate@engagewithbusiness.co.uk
