3 Valuable Reasons Business Exit Planning is Simultaneous not Sequential.
There are 3 valuable reasons why business exit planning is simultaneous and not sequential. It takes an open mind to see the logic. If you are not familiar with who I am, my name is Robroy Wiley. I’m a business exit planning strategist.
We have a tendency, from being conditioned at a young age, to think in a sequential fashion. In school we finish one assignment, we go on to the next. In work we do one task and then move on to the next.
Why start planning your business exit before you think you are ready? Shouldn’t a business exit happen towards the end? On the surface that is logical reasoning. Understandable.
Oftentimes, a business owner will tell me, “ I will need your services, just not right now, down the road.” or “ I’m too busy to think about that. But I know, I will need to talk to you.”
Really there is never a perfect or good time to start. There will always be a reason not to.
Here is my case to why business exit planing is simultaneous not sequential. 3 valuable reasons to start now rather than later.
First is building business value.
It takes time to increase and implement the drivers that bring value to your business. There are multiple components that help increase value. Beginning with the end in mind, helps determine the value drivers that will get you closer to your goal. Plus, it shifts a business owners mindset to working on the business instead of in it.
You don’t want to be the owner that wants to have sold their business yesterday, is tired, but discovers that no one wants to buy their business. Because it has no transferable value.
Which leads to my second reason.
Second is getting on the path to becoming inconsequential to your business.
The business has to be able to operate and generate revenue, in the absence of the owner. For this to happen the strategic plan does not work in a sequential fashion, but rather happens simultaneously; with all the other projects going in the company.
Read #1 kick butt challenge become inconsequential.
Third “What happens if?…”
What happens if you get approached by a party who wants to buy your business? Before you have even decided to sell. The benefit to simultaneously working on an exit plan is, your advisory team and you will have the tools available to assess.
Those are the three reasons why exit planning is simultaneous and not sequential.
