If you just started your business or are about to start a business, you need to have an exit strategy! Toronto Business and Technology Lawyer Sukhi Hansra explains why you should have an exit plan in your business and how to get started today.
No, I’m not kidding and it’s not a trick question!
When you’re starting a new business, it’s important to know your end game:
- Where are you trying to take this business?
- What is your financial goal?
- Do you want to sell your business?
- Is there a competitor you want to merger?
- Do you want to pass your business down to your children?
- Where do you see yourself in 10 years?
An exit plan helps entrepreneurs establish their priorities, and make smart business decisions with a clear goal in mind. But keep in mind, your exit strategy can change as you grow, and as your business grows.
If you take on a business partner or an investor, they’ll have an exit plan that will need to align with yours. Otherwise, you might run into decision making problems, as you and your partner are aiming for different end goals.
Think of it this way – imagine if you and your husband or wife are individually planning a vacation, but both of you haven’t yet discussed your plans with the other. You were hoping to surprise your significant other with a tropical trip to the Bahamas or Jamaica, while your significant other was eagerly planning a historical trip across Europe. While you were out buying swim shorts and snorkeling gear, your partner was gingerly comparing lightweight travel backpacks so that you can each pack light.
How much time, money and effort do you think you waste EVERYDAY when you and your business partner are not working towards the same end goal?
The important thing is to know your exit plan and use it to guide your growth strategy TODAY. If you haven’t had the conversation yet, it is never too late! Additionally…
Want to make sure that you and your business partners make the most profitable exit to your business? Click here to book a meeting with us so that we can show you the most effective exit planning strategies and how to make sure you get the most value out of your business.