Build it and they will come?
I’ve lost count of the entrepreneurs and business owners who has been so focused on building a business, they paid virtually no attention to how to optimise their efforts for a successful exit.
That’s partly because you need support to achieve a successful exit, not least to avoid any distractions which then lead to poor business performance – right at the time you need the numbers to be holding up in front of potential buyers.
But what should business owners be thinking about in advance of an exit?
1. PLAN AHEAD. The key to a successful exit is to start planning early. Don’t wait until you’re ready to sell your business to start thinking about your exit strategy. Make sure you have a clear plan in place that outlines your goals, timelines, and potential obstacles.
2. BUILD THE RIGHT KIND OF TEAM. You can’t do it all alone. Make sure you secure advice and support, from people with the experience and connections you need to make things happen. You also need a strong management team in place to make your business more attractive to potential buyers.
3. CLEAN UP YOUR FINANCIALS. Buyers want to see a healthy financial picture. Make sure your financial statements are in order and your books are up-to-date. Sounds basic, but it’s all too common a bit of a mess. Getting this in the right shape will help build trust and increase the value of your business.
4. KNOW YOUR WORTH (OR YOUR TARGET WORTH). Don’t undervalue your business (this is not very common!) but also make sure you have a realistic understanding of what’s required to achieve your target valuation.
5. BE FLEXIBLE. The exit process can be a long and complex journey. Be prepared to pivot and adapt your strategy as you go. Staying flexible and open-minded with HOW you achieve your ideal outcome, will increase your chances of success.