When to Take a Bow: Does your small business have an exit strategy?
You know how they say, “Leave the stage when the ovation is loudest”? How do you know when the ovation is loudest or that the ovation cannot be louder than it is at the moment? Questions like this keep me up at night.
What happens when you get bored running your current business and you just need to try something else for a change? or when you have smashed all the business goals and it’s time to close shop for a bigger adventure? Or you’re just plain ready for retirement? Or when your small business’ investors are ready to get their money back?
What’s the plan? Do you just pack up and say goodbye to the world of business? or do you intend to leave in grand style? marching band, remembrance service and a reception party? How you plan to leave the business and get your money back is called an exit strategy. Yes, people plan for these things.
You should also read: Thinking of starting a new business? You need to understand these costs.
Leave in Style
There is no one way to exit a business. The best way to choose an exit strategy is by choosing the one that is in line with the goals of your small business. We’ve shared a few ideas in this post but if you have questions, talk to us at Triift Africa, your business’ welfare is our top priority.
Just Cash Out
You’ve built a strong business that has a promising future but you’re done running it by yourself, sell it to another business. This is called an acquisition. It is best to contact a professional to valuate how much the business is worth and how much you could sell it for.
Have you read:
1. “ Game of Gains: How do you play?”
2. More than Just Positive vibes, your business needs positive cash flow too!
Invite Everyone
Recently, Jumia took this option and declared the company open for public investment. Did you buy a share? Tell us! You can sell your business to the public. In that case, it becomes a public company with more than one owner (shareholders). This is usually called an Initial Public Offer. You can choose to still be a shareholder if you want. This is a very good option for small businesses that have scaled.
Hand it Down
Is your business goal to become a family legacy? Then hand it down to a sibling, relative or mentee you can hand over the business while you find another adventure. If this is your plan, consider starting to train them now. That way, the business is still in the family and you can still get paid for it.
Acquihire
When Sade had to close down her cake business because she was leaving the country. She had 3 bakers who were really good, everyone knew it. So, she sold her business to another baking company just to transfer her employees there. Her baking business would no longer exist, but her employees get to keep their jobs. That’s how an Acquihire works.
Sit Back and Relax
You’re tired of running a business but you still want it to continue while you flex (take a break)? No problem! You can put an employee in charge while you sit back and relax or take up another venture or sell the business to an employee. Better to sell it to someone whose efficiency you trust right?
Have you decided how your small business would leave the party? We’d like to know! Keep in touch, follow Triift Africa on Instagram, Facebook or Twitter. Don’t forget to give us some claps before you exit this page, we deserve at least 50 don’t you think?
