5 Steps to Take Now to Prepare Your Exit Strategy
Creating a successful business is about providing needed products and services and developing a culture that supports these efforts. It’s exciting, frustrating, busy, and some of the most rewarding work you can do.
But what happens when it’s no longer the boost that gets you out of bed in the morning? What about when you find yourself thinking about retirement more days than not?
You might think you’ll never retire. “Work until I die!” might be your cry. But preparing now for an exit allows you to have choices later. Whether you retire or start another venture, the more choices you have, the better control you will have over your future.
What can you do now to prepare for an exit on your terms? These five actions can give you options for your future.
- Get your processes done and documented.
Having trouble with this task? We have started using Scribe. This is a neat little app records what you do on your screen and creates screen captures with directions you can edit. The app is simple to use, and you don’t have to do anything extra outside your normal process of documentation. Best of all, this great app is free!
Need more capabilities? Scribe also has a paid version with more features, like branded guides and advanced editing abilities.
- Automate, automate, automate.
Automating processes now with little oversight will not only decrease your expenses, but it can also increase the value of your company. It shifts reliance to a process rather than a person.
Programs like Zapier help you link systems so you can eliminate manual entry from one system to another. You can have new clients automatically added to your newsletter, or when a meeting is booked on your calendar, it can be added to your CRM system.
- Accurate financials are key to the next steps.
Getting your finances—both business and personal—organized will provide insight into your current state. What kind of revenue do you have now? What is your income? What will it be in the next few years? Understanding where you are now will help you understand what your future can look like.
- Explore what you want your life to look like once you do ‘exit.’
How much money will you need to live the life you want? Take some time now to daydream about the future. Stephen Covey has a famous quote, “Start with the end in mind.” Working back from what you envision the end to look like will influence the decisions you make now in your business.
Finding a good financial advisor like Stephanie Bruneau of Boston 128 Companies can help you achieve your vision.
- Find an expert on exit strategies.
Finding someone who can provide a variety of options is important—your exit is not a ‘one-size-fits-all’ situation.
Martin H. Abo, CPA/ABV/CVA/CFF, of Abo and Company can provide this service. They are active members of the Exit Planning Exchange, which is a group of professionals involved in exit planning from all backgrounds—estate attorneys, wealth management, commercial lending, etc. They can help you with options like employee stock ownership plans (ESOP) and bringing in a strategic partner or a private sale.
As always, we are here to help! First Steps Financial can help you organize your finances and gain insight to better prepare for your amazing future ahead. Reach out and schedule a consultation with our team!