What is your exit plan for your online business? How do you plan to retire your business in the future? Or, do you have working strategy to sell your business in the future?
A lot of entrepreneurs are stuck on their business or website and can only sell if emergency creeps in on them. Emergency selling of a website is never admirable in most instances. This is because the owners are forced to sell short of their real value.
More so, all the years of hard work expended on building the website/business may seem to have gone down the drain!
The emergency situations that can force business owners to sell-off their desperately may include: significant life changes like loss of loved ones, divorce, and sickness. Others are general business decline, opportunistic sale, business/partnership dispute, lack of motivation, etc.
We don’t need to sell short if there is an exit strategy in place!
We can avoid selling short by setting up a sales plan as an exit strategy. To develop this exit strategy, we must, first of all, focus our attention building value around the business, and understanding what the buyers are looking for.
Here are things buyers look for when buying a business and you should have them in place make irresistible proposal.
Identify Growth prospects for buyers – You need to identify and test growth areas for your business. Buyers would like to know if they can grow the business after taking over. You should clear their doubts on this by identifying the key growth areas and testing it for them.
Set up Verifiable records – potential buyers will like to check out your business records for analysis and decision making on the buy. You need to be able to provide separated and transparent records on key areas like finance, clients, customers, assets, and liabilities. If you plan to sell your business one day then all your records must be crisp and clean.
Ensure there is Ease of transferability – Buyers of your business will want an easy transfer or transition. In this vein, you must work on ensuring that all barriers to smooth transferability are cleared. For instance, log-in details, vendor and customer relationship and any other man- related risks of buying the business should be removed.
Identify and mitigate risks activities in the business – In the course of running your business, you will identify certain risk areas for the business. You must have plans in place on how to mitigate such risks. The potential buyers will check to see the high risk areas. The perceived risks could be centered on transactions, assets, customer relationships, economy, government interventions, etc. It would be to your best interest to identify these risks beforehand and put plan of mitigation in place.
You need not sell yourself short because of emergencies. Ensure you have the above factors in place if you want to sell your business at reasonably high value.
So, how to you plan to retire your business? What exit strategies do you have in place?