Creating an exit plan is not as simple as you might imagine. There are many myths and false beliefs about exit planning and building the business of your dreams. Understanding the myths can help you create a realistic and functional exit plan.
Myth #1 My Business Will Sell for Millions When I’m Ready
The truth is that while selling your business may be a viable exit strategy, pricing it can be quite difficult. Your business is personal to you. You created it from scratch and it is worth more to you than it will likely be to a buyer. You’re biased.
It may make sense to get professional help pricing your business so that you can sell it quickly when you’re ready. It is also important to realise that timing and other economic factors can play a role in the value and sale of your business.
Myth #2 I Can Create an Exit Plan Later
Sure, you can. However, you shouldn’t. Here’s why. Chances are if you put off creating an exit plan now, you’ll put off creating an exit plan five years from now. When you’re ready to get out of your business, you may have to wait several years before you can leave. You’ll have to make changes and position your business for your desired exit strategy.
Additionally, it’s not fun to think about but things like death, divorce, and disability can mean that you need to exit quickly. If you don’t have a plan in place, you may be in a bind.
Myth #3 Retirement Is an Exit Plan
It is true that you might be able to sell your business and retire from the profits. However, it would be foolish to count on that. You can’t predict what you’ll be able to sell your business for or how long it will take to sell it. Let the profits from the sale of your business be a bonus and not an income that youíre depending on.
Selling your business is only one of your exit strategy options to consider.
If you are interested in exploring a merger or sales opportunity, please contact me, I am always on the lookout. We can have a no obligation chat about your business to see if there’s a way for us to work together, or I can look into my contacts to see if I can connect you with anyone that would be better suited to help you.