Start Your Planning Your Exit Strategy Now With These 4 Tips

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Making eggs involves scrambling. There are very few lucrative results when it comes to selling a business. Sadly, too many founders find themselves in a shambles when landing their business. The reason is simple: they didn’t create an exit strategy early enough.

Lack of an exit strategy is rare but rare. A study by the Exit Planning Institute Note that almost half of business owners no exit plan, While it may be tempting to assume that they are all just escaping the reality of going one day, this is not always true. As someone who lives and breathes exit strategies, I’ve found that many founders don’t realize the many benefits of mapping out an exit strategy sooner than later.

according to exit planning institute Survey. Those benefits include making the most of sales. As a result, they may stop accepting a bid that is much lower than the bid they received if they have done their research years ahead of time.

Another benefit of starting a business with an expected exit is that the exit will likely go more smoothly. After all, travel has been “making up” over the years. It features a streamlined transition that doesn’t leave anyone with a feeling of whiplash.

related: Founder’s Opportunity: What Do I Want My Company To Grow?

It is worth mentioning that having a better understanding of the exit process can also avoid the frustration related to deadlines. It can take years for a business to go through all the stages of the merger and acquisition process. Many founders are surprised and stressed when they find out that an exit is unlikely to happen within a year. If they had done their homework early, they would have known what to do.

If you count yourself among the founders who have focused on putting their heart in your company, not on developing an exit strategy, worry not. There’s still time to get yourself and your business back on track by implementing a few strategies:

1. Learn about exit strategies

Unless you’ve gone through an exit strategy process before, spend the time getting up to speed on how it works. Read articles on everything from handling partner disputes to determining how often to go through the valuable process.

The more you learn about exit strategies, the better you will feel after launching yours. Ideally, you should have at least half a decade before you plan to move aside, as SVA figures estimate that It can take five to 10 years to get out, Use this runway time to familiarize yourself and potentially start working with a firm that helps businesses in your industry choose the best business exit strategy options.

RELATED: Exit Planning for Modern Leaders: How to Determine the Value of Your Company

2. Project what future you will do in five years

What does the future look like for you when you think about the world after you exit? Jot down your hopes and dreams. Be sure to include your financial objectives as well. Yes, life can change quickly. Still, keeping your goals in a readable format can help your founder’s exit strategy lead to a satisfactory conclusion.

Remember that you don’t have to say goodbye to your company just because you’re selling it. The exit strategies of many founders involve keeping them going. I work with many bosses who settle into roles ranging from advisors to board members. At the same time, other clients want to flex their professional muscles elsewhere and are fine with abandoning the brand they created. Just make sure you know what you need to accomplish.

3. Undergo a Business Appraisal

Maybe you think you won’t pull the lever on your exit strategy from your business plan for years and years. You should still undergo a professional evaluation. Here’s why: Your current valuation will give you a more realistic understanding of what you’ll get if you sell your company this year. It’s better to look at a number you don’t like today, because you have time to improve your assessment.

Many founders have a stellar view of market sentiment pay for their business – yet they have never done the legwork to back up their assumptions with real data. You may not feel good about what you hear, but this is an opportunity to make a change. Be sure to consider all variables if you try to measure your business value alone. The insurance company, The Hartford, recommends that your valuation includes more than financial formulas. For example, think the impact of your geographic location,

RELATED: 4 Ways to Stay After Selling Your Business

4. Treat Your Exit Strategy as a Living Document for the Business

It’s safe to say that the exit plans of many businesses had to be revised after the pandemic. Looking at 2020 data from the US Census Bureau, overall business sales somewhat or significantly reduced during the year. And although no one wants to return to the days of COVID, anything can happen in a dynamic, global market.

This means that you must remain adaptable while writing and executing your exit strategy. It’s better to bend a little than to be so rigid that you put off potential buyers or create undue stress. Keeping an open mind to all possibilities puts you on a firm footing and can result in even better results than you initially imagined.

Exit strategy planning needs to be front-loaded. This is not a can to be kicked in the street. Instead, it is an important part of any business. And it’s a good way to prevent those “eggs in your face” moments all founders want to avoid.