What Is an Exit Strategy in Business?
Your Exit Strategy in Business Starts with Visualizing Your Exit Day
When you look into your crystal ball, what date (day/month/year) do you see yourself exiting your business?
How much cash do you have in your bank account at the time of exit?
What is the sales figure of the business you leave behind?
Who is running your business after you? Your children? Your spouse? A foreign buyer? Your management team?
How many employees does your business have?
What products does your business sell?
Your exit strategy requires you to dream big at first. And you need to create this vision the day you start your business. Otherwise, instead of being the owner of your business, you will merely be one of its employees, working until your business "fires" you or the social security system retires you—and you’ll leave with an empty pocket. After all the hardships and troubles you've endured for your business, you might end up with nothing but regret.
We can agree this is not a scenario you’d want...
To make the vision in your crystal ball a reality, you must first understand that the only way for your business to gain value and generate cash is for it to operate independently of you.
According to an article on www.domainwheel.com, only 25% of small businesses in the United States scale and survive beyond 15 years, creating financial freedom for their owners. The article highlights that the difference between a business surviving or failing is determined more by the business owner than by external conditions.
Scaling your business and exiting with a full pocket takes an average of 10 years—if you properly establish the following four business systems:
- Marketing
- Sales
- Customer Service (Service Efficiency and After-Sales Support)
- Administration (Cash Flow and Team Management)
Entrepreneurs who build these four systems on solid foundations can create a cash-generating business without needing significant financial investments. In about 10 years, they can exit their business with their pockets full.
Those who fail to establish these systems, however, will likely disappear and fade into history within the same timeframe.
To be among the 25% and exit your business with a full pocket within 10 years of its establishment, you must create these four business systems in a way that operates independently of you.
This way, you won’t just build a business that pays your bills and works you like an employee. Instead, you’ll create a business that adds value to its customers, suppliers, employees, shareholders, and society—filling your pocket and lifting your spirit.
You should envision your exit strategy not 10 years later but on the day you start your business. Plan and take action toward this vision to avoid being part of the 75% that disappear within the first decade.
An exit plan is made not when leaving but when entering.
We work to ensure you exit your business with ease and a full pocket.
Scale Your SME and Exit!