The study, "Exiting Your Business: Serendipity or Strategy," found that interviewees who didn't have an exit plan were not able to respond quickly enough to changing markets and ultimately had to shut down their businesses, according to this article at WashingtonPost.com
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| Do you know when to head for the exits? |
It's hard to think about giving up your life's work, but as the article points out, there may be times when it's necessary. More importantly, it's even more crucial to *plan* an exit strategy as it is to execute one.
The study gives some good advice on how to craft a small business exit strategy:
* Run a business every day as if it is for sale.
* Be aware of your goals and parameters by knowing what is acceptable for you in a sale.
* Don't publicize prematurely to employees and others that could be affected that you're considering a sale. When you're ready to sell, be decisive.
* Get buyers' promises in writing and find a buyer who shares your vision. Include conditions of the business and the sale in the sales documents.
* Develop your own investment and insurance portfolio separate from the business.
Are you ready to exit your business if need be? Tell us about your exit strategy.
