Start with an Exit Plan to Reverse Engineer to Success.
Business exit planning is reverse engineering to succeed. How? We did it as children. We used reverse engineering when we were putting puzzles together. Every puzzle box had a picture of the end result on its cover. You had to figure which pieces went together to achieve success.
If you don’t know who I am, my name is Robroy Wiley. I’m a business exit planning strategist.
When piecing together a puzzle as a child, I always started with the border. You did not start in the center because it took too much time to determine which pieces belonged.
I would group border pieces into a pile and start assembling them. Once the border was established, I would work my way in. I would reference the cover to determine which pieces should go next. That’s a simplified version of reverse engineering.
Still, it’s similar to business. There are three reasons why business exit planning is reverse engineering to succeed. Where many business owners see exit planning as an engagement towards the latter half of their business cycle. By starting with the business exit plan, the owner has a final destination on where they want to lead their company.
Darren Hardy in his book — The Entrepreneurial Roller Coaster shares “it’s best to start with the end.”
Start with the end result.
Is cashing out with several million or multi-million dollars the end result? Is that the goal? Let’s say selling your company for $11 million would satisfy your post — business financial requirements. Write down your financial goal.
Size of the company
Is the company domestic or international? How many employees? Don’t be afraid to put down a hypothetical number. This exercise assists in thinking on a big scale.
Goodwill of the company
The overall purpose and mission of the company is a component of goodwill. Goodwill takes time to build and requires consistent public practices. Goodwill is factored into the market value of a company.
The answers to these questions will assist in developing a blueprint for strategy, employee relations, management structure, and the value drivers that help increase business overall value.
Second, in researching competitors, comparing their organizational structures and public goodwill, it will be easier to determine your competitive advantage in the marketplace.
By reverse engineering and beginning with the exit plan, it will chart the course for the owner to become inconsequential to their business.
Why is becoming inconsequential to your business the #1 kick butt goal?
It means that your company can generate revenue and survive without you. Isn’t that the goal of every business owner — freedom and flexibility in their business?
What happens when you get a multi-million dollar offer?
You will be able to determine if you want to sell or not. An offer from a private equity firm or family office means they have done their research on your company.
They look for companies that have a strong management team, generate a steady cash flow, codified process and procedures. Reverse engineer your business exit plan to succeed. Start with the business exit plan.
Merriam Webster defines reverse engineering as:
: to disassemble and examine or analyze in detail (a product or device) to discover the concepts involved in manufacture usually in order to produce something similar
