With businesses in the early growth phase, there is usually a very strong focus in making sales. This is logical, as sales means cash flow, and every business will die without cash.
However unless scalable infrastructure is also built to support growth, the business could eventually collapse under its own weight.
Building infrastructure requires thought and thorough forward planning. It switches the business owner’s focus from trading to training in areas they may never have considered. This can lead to a complete reassessment of the business and what are (or could be) its most valuable assets.
This process also becomes the foundation of a flexible and enduring business exit strategy.
The same factors that make larger companies attractive for investment apply equally to smaller ones. Every potential investor or acquirer will want to be sure that the business has:
· Growth prospects and a realistic future plan
· Good management
· A strong team
· Technical expertise
· Adequate financial backing
· A supportive partnership network
· Undisputed ownership of the tangible (but more importantly the intangible) business assets needed for profitable future growth.
Summed up, exit strategy is all about creating options. Business can be hard, never more so when there appears to be no way out. If sufficient time and effort devoted to each stage of the business’s life, the business will be stronger and all stakeholders can enjoy the ride.
Creating an exit strategy doesn’t mean you have to exit your business, just become ready to do so when the time is right. In a quieter marketplace the opportunity arises to take a step back. Why not create an exit tool to help you to navigate through these challenging times as well as position you for a profitable exit in the longer term?
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