All entrepreneurs know how to get into business. They incorrectly assume: “I’m going to own my business and it’s going to be great and it’s going to make me rich!”
What most entrepreneurs don’t know is how they plan to get out of their business. Most small business owners don’t have proper exit strategies in place. But, much like going through a divorce, there are details that need addressed for an exit.
All business owners need to have a clear plan to either scale the business or an exit strategy to sell or close the business. At some point, you will have to ask yourself: “What am I going to do when I reach my goals for this business?”
Once you’ve started, the business details can get dreadful. I get it. I’ve been there. There are hurdles, setbacks, government forms, taxes, and of course – dealing with employees! Everything will come at you. Owning a business is one of the most stressful things you can do.
I say I used to be an “angry owner”. The difficulties of owning a business without a clear plan made it that much more difficult, and I was an angry person to work with. Then I started thinking about the next generation and how my businesses would function without me. What do you do? Sell it? Close the doors?
Since then, every business I’ve closed I’ve mathematically figured out when it wouldn’t be profitable anymore. Trust me, it’s easier to plan an exit strategy before your business is no longer cashflow positive (meaning having money coming in). Having this plan in place makes me a more pleasant and effective business person!
I know it’s difficult to plan out a business future. Most business owners are simply struggling to survive – so planning to scale or exit the business isn’t even on their radar. I can show you how it feels to make an exit strategy.
It’s a fantastic feeling of validation to know you can successfully open a business, but also plan to have nothing in the store, no money in the business account, be out of debt, and successfully close as well.
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