Jerry Mills, founder of B2B CFO®, was quoted in an article on exit planning that was published in the August edition of InBusiness Magazine. Please read the article here.
There are numerous options for the entrepreneur who decides it’s “time to move on”.
My take-aways from the article, in addition to the information on the various exit strategies, are:
- “As the late businessman and author Dr. Stephen R. Covey writes in The Seven Habits of Highly Effective People, you start with the end in mind. Any business owner starting out should have a sense of what the plan is.”
Depending on what stage the owner is with their company, this “sense of what the plan is” can be just that; no details, but a sense of what the exit strategy (or alternative exit strategies) might be. Over time, this sense should become more defined until the strategy becomes a goal in the company’s strategic plan, and the corresponding tactics are implemented to achieve that goal.
- “The primary reason a company shuts down is because it fails to make money…But ailing companies can be helped with the right management team at the helm.”
As I mentioned in a previous blog (Rule #1: We Don’t Know What We Don’t Know), the team members that achieved a certain level of company success may not be able to achieve a higher level of success or even maintain the current level because different skill sets and capabilities are required. Business owners can help ensure the “right” management team by continually looking to increase the skills and capabilities of their team through training and hiring, and by including their trusted advisers as part of this team.
- “But Mills notes it is important to first fix whatever may be wrong, even if it means delaying the process of bringing in a buyer.”
Fixing whatever may be wrong can, and should, be addressed at any time during the company’s life. Business owners can add value to their companies and for themselves through cultivating a culture of continual improvement. This culture is both internal and external through the inclusion of the company’s trusted advisers. An owner whose company is operating at the top of its game and who is implementing an exit strategy plan is much more likely to successfully achieve their exit, whenever that may come, than an owner who does not.
B2B CFO® partners can help you build and maximize your company’s value. We can also provide you with an exit strategy plan and help you manage the implementation of that plan. Everything we do is to improve owners’ lives and help them achieve their goals. Please contact me for a no-charge Discovery Analysis to get you on your way.