If you know that you will not be able to continue running your Edwardsville, IL business, you need to make sure that you develop an exit strategy. No matter your age, health status, or love of your work, you must be ready to step away from day-to-day operations eventually.
Three Possible Exit Strategies
When thinking about how you will be able to get out of your business, you may assume this is all negative thinking. However, this is the exact opposite. Coming up with at least a simple exit strategy early on allows you to plan your business’s success in greater detail and with better accuracy. For example, if you knew that your goal was to sell your company for a profit within a 10 years’ time, your business plan and decisions can be shifted towards meeting this objective. Without coming up with an exit plan, this can make your business plan feel less focused and more chaotic.
There are several ways that you can leave your business including:
- Close Your Business: This option may seem to be the most negative, but it is also the most realistic. Perhaps the costs that are involved with a sale would be too great, or you may not have someone to pass the business on to. If this situation were to occur, you may have no other choice but to liquidate your assets and close your company.
- Sell Your Business: If your business has found its specific niche and is found to be profitable, you can start looking into selling options. In order to properly sell, look into private buyers who are interested in what your business does, or depending on the industry you are in, you could find another company that would merge with yours.
- Plan for Your Succession: Another way to exit your business would be to pass it on to a successor. Identify and train this individual who could run your business when you retire. This could be someone who is in your family or a trusted employee. You can choose to continue being the owner while allowing your successor to deal with regular day-to-day operations.
Get Help With Your Exit Strategy
Developing an exit strategy takes time, and it doesn’t have to be when you are immediately ready to leave your business. Doing this is just a way to plan for your business’s future. If you are interested in creating an exit plan, give our team at Action Law Center a call today!