When to Create Exit Strategy
It is said that the best time to build an exit strategy the day on which you start a business. It may sound good, but it is not much realistic. Also, it is not very optimistic as well. It is very unpleasant to think about the strategy of getting out of this business, on the very day on which you started it. However, when you take the business to a place where you have some extra time to plan; you will notice that the actions that you perform to improve your business are the same actions that are planned in an exit strategy.
Though we cannot predict misfortunes but we can always plan for them. One can never know when any illness or accident will force the business to be sold. When running your business becomes full of dread, then it might be the time to consider selling. Below are some ideas which will help you in improving your business. These improvements will also prove to be of benefit, when the time comes to sell the business.
At least on the surface, cash flow is a thing which a potential buyer will want to have a look at.
It might look like everything about the business is fine but, small negligence e.g. two letters in the neon sign that are not working; can hit to a potential buyer as the current owner has lost interest in the business. It leads them to wonder that what else might be broken or neglected.
Often business owners don’t consider things which can add some real value e.g. specialized computer systems, secret recipes, customer loyalty programs, costumer lists, etc.
It is necessary that the lease is transferable and your landlord is cooperative. Minor issues and problems often raise their heads at sensitive occasions which can spook a potential buyer. So, the best time to fix/resolve them is prior going to the market.
Ready to sell? Contact CBC Business Brokers Sydney today on 1300 661 498 for a free strategy session.
CBC Business Brokers Sydney
Level 34, AMP Centre,
50 Bridge St,
Sydney NSW 2000
T: 1300 661 498