… a question to ask yourself, whether or not you want to exit in the future.
Because figuring out how closely tied you are to your business, can also make it more resilient…
👉🏼 HOW WELL DOES THE BUSINESS OPERATE WITHOUT YOU? Some business owners can easily take a vacation for a month and the business still functions. Although – there will often be a ton of “urgent stuff” which needs their attention the second they return. And your business might tick along perfectly well without your involvement in the short term – but start to drift over time, regarding growth and direction.
👉🏼 ARE YOU THE FACE OF THE BUSINESS? Something I see a lot. Business owners who have navigated themselves into more of a back seat role – but their major clients still know they’re around and contactable. Or where owners are drafted in to close major deals. Never underestimate the role of personal loyalty from your customers – and be aware of how to manage it.
👉🏼 HOW ARE DECISIONS MADE? A large part of commercial success is driven by the quality of the questions asked… And the quality of the decision-making process in answering those questions. It’s really hard to replicate decision-making, if those decisions are based on individual experience, gut feel or personal preferences.
👉🏼 ARE FINANCIAL BOUNDARIES BLURRED? Nothing to do with the size of the business and everything to do with complacency (or worse). Some owners treat their business like a personal fiefdom. I’m still occasionally gobsmacked at what makes it into the accounts of some businesses. Tangled personal and business finances can cause all sorts of complications down the line.
👉🏼 IS YOUR IDENTITY CLOSELY LINKED TO THE BUSINESS? There are different ends of the spectrum. Business owners who identify more with their entrepreneurial endeavours – and those who identify with the business itself. Beyond an exit, owners who have a separation between themselves and their business can still be proud of their achievements, but more readily turn their attention towards the next endeavour.
👉🏼 ARE YOU PREPARED FOR AN EXIT? Do you have a clear exit strategy and everything you need to optimise the valuation of your business and accelerate your exit?
#SME #ExitStrategy #UKBusiness #M&A