Exit Strategy: Selling a Business by Choice or by Necessity? A Personal Journey

by Bill Gollan 17th of June, 2024

Exit Strategy: Selling a Business by Choice or by Necessity? A Personal Journey

Whether you're considering selling your business by choice or due to unforeseen circumstances, having a well-thought-out exit strategy is paramount. My personal journey serves as a cautionary tale of the consequences of not having a clear plan in place.

For years, I poured my heart and soul into building a profitable business. It was my pride and joy, something of immense value that I had painstakingly cultivated. I felt invincible, with no major health concerns to speak of. But then, seemingly out of nowhere, my health took a sudden turn for the worse.

Faced with unexpected health challenges, I found myself making hasty decisions. My family members were either too young or too elderly to step in and manage the business effectively. In the midst of health concerns and family responsibilities, I realized I hadn't adequately prepared for the possibility of needing to exit my business.

The consequences were swift and severe. What could have been a smooth transition turned into a frantic scramble. Potential buyers who would have purchased at fair market prices suddenly swooped in like vultures, sensing an opportunity for a bargain. The bottom line? It costs you money not to have a plan.

This experience underscored the critical importance of having a clear and well-defined exit strategy in place, long before it's ever needed. Whether you're selling your business by choice or out of necessity, the principles remain the same. Here's why:

Protect Your Investment: Your business is likely one of your most significant assets. A carefully crafted exit strategy ensures that you can maximize its value and protect your investment when the time comes to sell.

Maintain Control: By proactively planning your exit, you retain control over the process. Rather than being forced to make decisions under duress, you can dictate the terms of the sale and ensure that it aligns with your goals and priorities.

Mitigate Risks: Unexpected events can arise at any time, whether it's health issues, family obligations, or changes in the market. An exit strategy helps mitigate these risks by providing a roadmap for navigating potential challenges and uncertainties.

Maximize Value: A well-executed exit strategy allows you to maximize the value of your business. By positioning it for sale effectively, you can attract qualified buyers and negotiate a fair price that reflects the true worth of your enterprise.

Ensure Smooth Transition: Perhaps most importantly, an exit strategy ensures a smooth transition for both you and your business. Whether you're passing the torch to a successor or selling to an outside party, having a clear plan in place minimises disruptions and ensures continuity of operations.

In conclusion, whether you're contemplating selling your business by choice or find yourself facing unexpected circumstances, an exit strategy is non-negotiable. My own journey serves as a cautionary tale of the pitfalls that can arise when you fail to plan ahead. Don't wait until it's too late. Start crafting your exit strategy today, and safeguard the legacy of your business for years to come.

Your business not only makes you money whilst you are running it. It makes you money when you sell it!

Tags: exit strategy business owner small business tips