If you own a company, now's the time to create an exit strategy. If your company is thriving, you might think this is the wrong time to plan an exit strategy. That's not the case though. In fact, creating an exit strategy before there's a problem is a good way to prepare for the future. You never know when the time will come for an exit. When that time does arrive, you want to be prepared for your exit. If you're not sure you need an exit strategy, read the list below.
Be Prepared for the Right Offer
You might not want to sell your company now, but that could change. If it does, you want to be ready for the opportunity. That's where an exit strategy becomes beneficial. A good exit strategy includes the current value of your company. That way, when someone does show an interest in your company, you know if they're offering a fair price. Plus, when you have an exit strategy in place, you don't need to make any last-minute decisions when you sell your company. Instead, you'll be ready to go.
Retain Key Staff Members
If you're tired of losing key staff members, it's time to look at your exit strategy. You might not realize it, but the right exit strategy can help you increase staff retention. That's especially true when you include staff members in the exit plans. One way to include staff in your exit strategy is to offer them shares of the profits. This helps you retain staff in a couple of ways. First, they're more likely to stay on staff if they know there's something in it for them. And, your staff will work harder to increase company value if they benefit from the increased value.
Ensure Smooth Transition
If you want to sell your company in the future, now's the time to think about the transition. When you sell your company, the new owners will want a smooth transition. One way to ensure that is through an effective exit strategy. You can use your exit strategy as a way to train your staff. That way, they know what to do when new management takes over.
Don't take chances with the future of your company. Take the time to create an exit strategy right away. That way, you and your team are ready for the future.
To get started, contact a business exit planning service in your area such as RSI & Associates, Inc.