First and foremost, I have always thought and planned about what I will do if I build a successful business and always develop an Exit Plan built into my original business plan and strategies. I quickly learned over the years working in New York, San Francisco and globally, an exit strategy must allows be developed and implemented from day one.
By this I mean, an Exit Strategy is a method by which the most successful entrepreneurs, founders and investors, especially those that have invested large sums of money in their business (or their startup companies), transfer ownership of their business to a third party, or by which they recoup money invested in the business. In fact, the sooner you start planning and developing your Exit Plan, the more likely you will be successful. Always be thinking of your end-goal and what’s best for your staff, shareholders and management.
Additionally, as approximately 8% of small-business owners in the US employ up to 70% of Americans, it’s usually the biggest opportunity to maximize your investments, assets and equity if you plan for success from day one. Make sure you always do your analysis, strategic planning, implementation plans and develop plans and methods to excel at customer experience, surpass, outclass and out compete your competitors.
Here are some of the area’s I would suggest you think about from day one to achieve maximum success with your EXIT:
- Look at all your options. E.g. IPO, a Strategic Acquisition, Management Buyout, etc.
- Consider your future role in the business.
- Evaluate and know your liquidity needs
- Know and understand company’s future growth potential.
- Assess market conditions. E.g. the demand for you company’s products or services , nationally and/or internationally
- Understand and learn how to maximize your results by, marketing your company to investors requires a slightly different approach than presenting to potential strategic buyers.
Here is a short-list on other key areas you must consider to maximize your EXIT are:
- Have a Data Room – e.g. a location for all your DD documents (Due Diligence). Including: legal structure, Minutes, Stock Certificates, etc. This is critical and a transaction Attorney controlling these documents, trade secrets, IP is a must. A strict non disclosure document and non-compete needs to be in place too.
- Competition List
- Key Vendors and Service Providers List
- Insurance Checklist
- Inventory Checklist
- Litigation and/or Claim Checklist
- Taxes Checklist
- Branding, Communications, PR Checklist
- Intellectual Property Assets Checklist
- Technology, Software and Hardware Checklist,
Finally, once you know whether your company or brand will be attractive to institutional investors, or whether strategic buyers are actively looking for companies like yours, consider the steps listed above, as well as the price.
Then consult with investors and senior managers and team, so you can make the right decision for everyone involved: you, your company, your employees, and your customers.
If you are serious about results in 2017, contact me now as developing and implementing the perfect EXIT STRATEGY, can be the most important deal you will ever make in your entire business life! Contact me directly at; firstname.lastname@example.org or via Twitter at: https://twitter.com/geoff_deweaver
More about Geoff De Weaver:
Feel free to get in touch with Geoff for further information:
- Personal Website: https://geoffdeweaver.com/
- LinkedIn: https://www.linkedin.com/in/geoffdeweaver
- Twitter: https://twitter.com/geoff_deweaver
- Touchpoint Entertainment: http://touchpoint.best/
- Geoff’s Amazon Authors Profile: https://www.amazon.com/Geoff-De-Weaver/e/B007DAEKFG/ref=dp_byline_cont_ebooks_1