If you’re in the throes of building a company, you are likely not even thinking about what comes next. But now is also the time to start planning the long-term strategy for your exit. To one day pull off a successful—and profitable—business exit, there are four important steps.
Planning your small business exit strategy
1. Start planning early
Do you remember this quote from Mad Men? “The day you sign a client is the day you start losing them.” It’s not all that much different when you start a business. You know that your ownership or day-to-day management will come to an end someday; the question is whether or not you will be prepared for that day.
And there’s another truth that drives home the importance of this principle: You don’t get any mulligans with retirement. You will only get one chance at leaving your business, so you don’t want to be caught unaware when the time comes. Starting to plan five or even 10 years ahead of the date when you’d like to completely step away is about right.
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