BUSINESS EXIT PLANNING?
By: Jeffrey Frankhouser
PROBLEM: Exit Planning is Not Just for Those Exiting Their Business
As a business advisor, I frequently hear owners say, “Why should I plan my exit, I’m not retiring for many years.” The fact is, the best time to plan your exit was when you started your business. Your Exit should have been an integral part of your original business plan. It’s simply good business strategy.
SOLUTION: An exit plan allows an owner to work on their business rather than just in their business. Manage your business as an asset class, because that’s what it is. There are only two reasons why an owner opens a business in the first place. Autonomy/prestige and to build wealth. Exit planning combines the plan, concept, effort and process into a clear, simple strategy to build a business that is transferable through strong human, structural, customer, and social capital.
In working on their business, owners mitigate risks, learn how to grow, protect, and harvest their business value, preparing themselves for their ultimate exit.
For ideas on effectively planning your business exit, check out the resources: Covenant-Business.com