Articles 
You don’t need an exit plan
Not many business owners have an exit plan. In fact, in our own experience, less than 10% do. So that kind of proves the point – if the majority don’t have an exit plan you don’t need one either.
Take on the other hand less than 20% of business owners achieve the valuation they expect when they sell some or all of their shareholding. Coincidence? We don’t think so.
But the fact remains, you don’t need an exit plan.
Your business exit isn’t all about you
You know that at some point you will no longer own or run your business – nothing contentious about that statement. You may not know quite how much you can influence how and when that will come about and therefore how well you and your family will be ready for whatever comes next in your lives. This is about you.
But your business exit is also about your business, your co-owners, your team and everyone else involved and dependent on the company you have built. So, when considering your next stage of life and the part your business will play you have a lot to think about.
Have you had enough of running your business?
You head to the exit when the performance is over. There is a sense of finality, a transition from one state to another, perhaps a feeling that there is nothing more to see or do.
But if you have more to achieve in your business the thought of an exit plan may feel premature. You might question the value of spending time and energy on planning when the next phase of your life seems very distant.
Building your exit plan
The exit planning process is designed to give you the outcome you want from the sale of your business or your share thereof. Previously we described the first three steps: determining your desired outcome, considering the perspectives of other shareholders and stakeholders and evaluating the current performance of your business.
The fourth part of the process is to ensure you have a plan for the business that results in your desired outcome i.e. the value and conditions of exit you desire at the time you want it.
Without long-term planning, how do you determine the future of your business?
Depending on the industry you are in, your interpretation of ‘long-term’ will vary considerably. In oil exploration or pharmaceutical development ‘long-term’ can run into decades, for an online retailer your horizon will be considerably shorter.
However, what about your personal long-term planning? If you own your business, either alone or with other shareholders, what have you planned for?
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Downloads
We’ve written a number of guides on selected business subjects that will set you and your business in good stead for whatever future you may choose.
These are free for you to download and to make use of in your business, so please help yourself.