Does your business currently have a succession plan in place?
Based upon most businesses that we engage with, the answer is likely no. We are amazed by the number of businesses that have not invested some time, to think about what your business is worth now & what you business could be worth in the future?
In the beginning stages of your business idea, you will likely invest a significant amount of hours into your vision and dream.
Consider, if on average you invest 40 hours per week into getting your idea up and running, that is approximately 2,000 hours in the first 12 months alone. Time is money. Why not take an hour, to stop and think about what your business is going to be possibly worth one day in the future.
Also, many small business startups are founded by more than one person.
Makes sense, when synergy can be realised, by combining knowledge, skills, experiences and also reducing costs, such as overheads, establishment and the likes. Consideration around exit strategies should then involve all parties in the business; idea or underway.
Has it been agreed what each parties share in the business is ? (in percentage terms)
Has it been agreed how many hours each person will invest into the new business?
How is each persons injection of time and / or resources being recorded and tracked?
Does your exit strategy consider the benefits of succession planning? - cover options for everyone who owns a stake in the business?
Is there a win win that can be established from day one?
Having an end goal agreed, by all parties to a startup in the beginning, can be positive motivational force for your business idea to take it forward.
Having a third party involved, to help work out your exit strategies can really assist. Think support team, comprising numbers person, to talk multiples, profit, tax and you'll likely need a marketing person, to talk change, sales, strategy and the likes.
Not sure? Send us a Message to begin a discussion.
As a team of business buffs, we've enjoyed watching The Mentor with Mark Bouris on Channel 7.
Click on the link to visit the program website and watch a quick video snippet from the program :
Mark Bouris talks exit strategies - how to make one, and why they're necessary
We are working on developing an information exchange for business in the regions, providing regionally attuned networks and 'on the ground' support and advice. Till next time, Go well building your business success.