How to Design the Perfect Business Exit Plan
Are you a business owner looking to exit your business but don’t know where to start?
The harsh truth about owning a business is that there will come a time when you will leave your business. And when such time comes, your level of preparedness will be the difference between a smooth transition and a painful exit.
I recently had the pleasure of speaking with Julie Keyes on the Poised for Exit Podcast to discuss the crucial steps to a successful business exit.
Here are some of the highlights and key takeaways from our discussion:
How to navigate the tricky waters of exiting a business
How to exit your business on your own terms
Ways to maximize the exit potential of your business
Valuable resources for business owners looking to exit their businesses
Where to get serious buyers for your business
When to start planning your exit strategy
Why starting early could be the best decision you'll ever make.
LISTEN HERE
Some Key Moments:
(00:00:00) Introduction
(00:03:17) Steve’s transition from financial advisor to exit planner
(00:04:17) Why Steve chose to become an exit planner
(00:07:15) Lessons learned from transition
(00:13:29) Obstacles in the financial advisory industry
(00:19:43) Addressing the need for exit planning
(00:20:43) Resources for advisors
(00:20:59) How to design a business exit plan
(00:21:58) Timing and taking action
(00:22:27) Parting thoughts
The Journey from Financial Advisor to Exit Planner
My transition from a financial advisor to an exit planner is a story of evolution and adaptation. Having experienced the process of exiting my financial advisory firm, I now dedicate my expertise to assisting others in the industry with their exit strategies. My firsthand knowledge and understanding of the emotional and practical challenges that come with selling a business are invaluable to those embarking on this journey.
Understanding the Stakes and Stakeholders
There is nothing more important in an exit process than understanding the stakes and the stakeholders. Always have their interests top of mind. This includes clients, teammates, and the buyer. Each group has its own set of expectations and needs, and balancing these is key to a successful transition. You want the transition to be as smooth as possible.
As the owner of a company, selling a business is a very emotional process. So, focus on the exit but also have plans post-exit to ensure a smooth transition into the next chapter of your life.
Overcoming Industry-Specific Obstacles
In the financial advisory industry, succession and exit planning come with unique challenges. The common mistake most entrepreneurs make is overvaluing one's business and the necessity of understanding the client base. You don’t just wake up one morning and sell your business. You need a robust team of advisors to help you facilitate a successful exit.
A Special Resource for Business Owners
The easiest way to sell your business is to use something I call a "Simple Business Exit," which serves as a roadmap for business owners contemplating their exit. This report, available at simplebusinessexit.com, outlines five vital steps to take when selling a business. It begins with setting a plan and conducting an assessment from the buyer's perspective, offering a structured approach to exit planning.
The Biggest Challenge: Inaction
Inaction is the biggest hurdle business owners face. Many delay the planning process, mistakenly believing they can decide to exit on a whim. However, the reality is that a well-thought-out strategy takes time to develop. The earlier you start, the better your chances of crafting a winning exit strategy.
Final Thoughts
There is nothing more valuable in a business owner’s exit strategy than the knowledge and resources you can get from other business owners. Consult experts and talk to other entrepreneurs who successfully sold their businesses--this will help you gain a deeper understanding of the steps involved in exiting your business.
Remember, planning and preparation are the cornerstones of a successful business exit. Don't wait until it's too late to start considering your options. Join us again for more insights and discussions that can help you prepare for a poised exit.
