Set Your Exit Strategy From the Beginning Part 2 / by Kerri
Here are five more tips on goals to explore to be sure you achieve your ultimate goals when you exit your business.
Align Your Goals With Your Exit Strategy
Do you have goals now? Do you have:
- Daily goals
- Weekly goals
- Monthly goals
- Quarterly goals
- Annual goals
- 3 year goals
- Exit goals
You need all of them if you want to achieve your exit goals. They must be aligned and integrated.
Here’s a secret no one talks about but they DO want you to know:
Consistency among all these goals is essential or
- you will fail to exit
- you will drastically reduce the value, AND
- you will pay a premium for the service providers in the exit market.
And yet, all of this is 100% avoidable!
The answer is to not just set goals but to stay focused to achieve your goals.
You must know your exit date (or at least the criteria for it) and set it at least 2-3 years out – to have time to systematize, streamline and leverage your business to get the maximum valuation.
To get the results you want:
- Your exit strategy must be part of your initial business plan
- Your exit strategy must be part of your annual plans every year
- Your exit strategy must be built into your 3 year goals from the outset
Identify Goals To Increase Value
What can you do to maximize the value in your business? To achieve your goal, you must:
- Sell more
- Increase prices
- Reach new markets
- Reduce costs
- Document your expertise
Is The Value Right Now In You Or Your Business?
Be honest, is the value of your business now in you or in the business? This is an uncomfortable wakeup call for most entrepreneurs. Are the expertise and the business strategy all in your head, and in your proprietary files? You have nothing to sell and you have no exit options if this is still true.
Instead, you can and should start to train others on different pieces, outsource different pieces, or start delegating more and more. The side benefit of delegating, outsourcing and automating is that you free up time to work on your most valuable activities including your exit strategy to achieve your goal.
“Business owners do not plan to fail. But 95% fail to plan. Don’t be one of them.”
Integrate your exit strategy in every plan, every goal from the outset to ensure the value of the business is in the business.