Note: This memo was not created with ChatGPT.
I recently wrote, “exit planning really does mean planning (in advance).” It’s one of the items on my list of 12 value drivers for small businesses. What does it mean?
Let’s start with:
- Who – is your logical buyer?
- What – to exit with style, grace, and more money™.
- When – determine a target date range.
- How – by doing the things necessary to attract good buyers. For more on this click here to our article on an ACTION™ plan to sell your business.
The how is the most important part because it’s what every owner should do to make their business more attractive to buyers, banks, and investors. Any plan, whether bullet items or a long discourse should include:
- A strategy for the owner to step back, becoming chairman of the board not active CEO. This means building a great team.
- Reducing any dependencies whether they be employees, a key customer, a dominant supplier, or, especially, the owner.
- A growth plan, including implementation.
- Solid financial systems and accurate statements (no blending of the personal and business checkbooks).
And most important, activities, goals, action items, and metrics.
“Civilization is like a thin layer of ice upon a deep ocean of chaos and darkness.” Werner Herzog
“Nothing is as permanent as a temporary government program.” Milton Friedman