How Exit Planning enhances business growth

Even though business planning and exit planning appear to be at the opposite ends of the entrepreneurial spectrum, they are intrinsically entwined.

The questions around how you want to leave the business you have founded is often left until the last minute, when you decide to sell up. Yet the exercise of planning your exit will highlight both opportunities and potential issues at an early stage, allowing the owners to take action that will undoubtedly benefit both the business and the exiting shareholders.

If you switch things around and look first at how (and when) you want to leave, and how much money you’ll need thereafter, you are able to drive the business towards those objectives.

So, does the tail wag the dog in your business?  Are you just hoping that the business will deliver the financial return you need to enjoy the lifestyle you’re hoping for?

By focusing on the end game, exit planning becomes a powerful strategic growth tool that aligns your personal and business goals.  Of course, strategic growth doesn’t happen in a vacuum; exit plans, like business plans, need to be reviewed and updated regularly. And there are always bad decisions that show up in hindsight. Equally economic conditions and unforeseen personal circumstances can throw out even the most carefully timed plans. Nevertheless, exit planning is a potent weapon in the business owners armoury and, used properly, will deliver a much higher return on your investment when the time comes to exit.

For help putting together your exit plans, sign up for Evolution’s 2-day Exit Planning Course for Business Owners and Managers on 22nd and 23rd October at Lingfield Park, Surrey.

 

 

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