Building a Business Exit strategy for Women Entrepreneurs
Spring has officially arrived, bringing new growth and a fresh opportunity to look forward towards new goals. Some may be short term, but don't forget to think about more distant goals, too, like your business exit strategy. We know it may not be at the top of your list right now, but trust us – it's never too early to start planning.
When it comes time to step away from your business, having an exit strategy will increase the chances of a successful transition. So, start by looking into potential buyers, evaluating your business's value and setting a timeline for your exit.
Identifying Potential Buyers or Successors
The first step in planning your exit strategy is to determine who might be interested in buying your business. It may take some research, but it's important to know who you could sell your business to so that you can maximize its value.
You also need to plan for your successor before it's time to leave. If that's someone in your company, that gives you time to train them to take over when you're ready to hand over control. Planning for leadership after you exit, whether it's an outside buyer or someone from inside the company, sets the stage for success. Our blog post, Successful Business Succession Planning for Women Entrepreneurs, can help you get started.
Evaluating Your Business's Value
Along with knowing who might be interested in buying your business, you need to evaluate its value. Consider looking into industry standards and trends, as well as any unique features of your business that could increase or decrease its worth. Knowing your business's value ahead of time will give you a better idea of how much you can expect when you eventually sell.
Value can reach beyond money to the quality of the community inside your business, too. Diversity, equality, and inclusion are core values in many women-owned businesses.
Ensuring that continues when new leadership takes over creates a healthier and friendlier work environment and creates more growth opportunities for marginalized groups including women, minorities, and the LGBTQ community. We explore this more in our Maintaining Equity When You Exit Your Business: Why it Matters for Women, and 5 Mistakes to Avoid When Selling your Business blog posts.
Developing a Timeline for Your Exit
Now that you've identified potential buyers or successors, and evaluated your business's value, it's time to develop a timeline for your exit. Consider when the transition will occur and what steps need to be taken in order to make sure it goes off without any hiccups.
We know this is not an easy task, but don't wait until it's too late to start planning. A well-planned exit strategy will help you ensure the long-term success of your business. So, take the time now to start mapping out your exit plan and be sure to update it along the way as needed.
Don't wait until it's too late – create an exit plan that will ensure the long-term success of your business today! It can be overwhelming, but with some careful thought and planning you can make sure your business is in great hands once you're ready to move on. Good luck!