As a small business owner, do you think you can maintain great efforts on running your business? If your answer is yes, then that’s a good thing for you. You do not only have the motivation and interest, you also have the grit and the commitment to keep going. If your answer is no or if you’re not sure enough, then maybe you need a plan to stay ahead of the game.
Regardless if you are a hundred percent or two percent sure that you will be able to maintain your business, it is always necessary to have back-up plans. If you will recall the Great Recession of 2008, banks did not realize how dependent on derivatives they have become. For years, they became accustomed to this practice – selling too many bad mortgages just to keep the supply of derivatives running. In the end, a financial catastrophe happened, spilling outside of the housing and banking systems. This is of course greatly affected businesses, both big and small.
Now, 75% of economists are predicting a similar recession just before 2021. So, as a small business owner it is crucial that you prepare to face these kinds of challenges. Even if you are 100% sure that you will be able to maintain your business, an exit plan is necessary to keep your business and personal life in check. Exit strategies are the roadmap of your future success – it will reflect your business’ capacity to face different challenges and issues. It will also assess your own capability to mitigate issues and adapt to the changing business environment.
You may ask now, how will you create a great exit strategy? Every small business is unique and there is no guaranteed path that will guide you towards the perfect exit plan. Read the tips below in order to create the best plan for your business.
Know your business. Sound a lot like common sense, right? Well, knowing the nitty-gritty of your business is an advantage that will help you understand how successful you will be in the future. Knowing your business does not only pertain to knowing your vision or the mission of your company, it doesn’t only mean knowing the services or the products that you offer. What it means is understanding the intricacies of your business – how does it respond to target audiences, how is it accepted in social media, or how does it respond to the changing of seasons. Truly knowing about your business is getting out of the box in order to learn more about the impact of your business to the market and of course, the impact of the market to your business.
Know your market. In keeping up with the knowledge of your business, of course, it goes without saying that you should also know the market that you are in. The external factors that affect your business is something that you should consider in your exit strategy. Why? Because these are factors that can’t control, and they can cause either the bankruptcy or the great success of your business. By knowing the market, you can have a general prediction on the trends that may rise or fall with the market economy. And anchoring your exit strategy on this factor will allow you to maximize your gains by being prepared for the future.
Know yourself. You might find this funny but knowing yourself is an important factor that can determine the course of your exit. You should be able to know what you want in the long-term, how is your capacity to handle issues, can your ability enough in managing unexpected situations, what is your goal for yourself and for your family. In short, what do you really want? As the captain of your ship, everything depends on you. This is the reason why knowing yourself if the most important factor of all. Do you have what it takes to take your business to the next level? Do you want to retire immediately and have your child manage the company? Do you only want the thrill of starting up new business ideas? You cannot have an exit strategy that does not reflect what you want. Learn what you want and pattern your plan according to it.
Quoting a famous psychologist, Alice Miller, “We are often imprisoned in the cage of our own abilities and routines, which provides us with a sense of security”. We cannot just rely on the current way of how things are running. It is true that we may find security or a sense of comfort on how things are currently situated, but we must not forget that there is no permanence in business. We should always be prepared. We should always be one step ahead.
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Brett Pittsenbargar With over 20 years of investment experience and a track record of business development in contracts, negotiation and due diligence, I am uniquely positioned to help owners exit their business or implement strategies to stimulate growth and keep existing employees happy. I strategically invests in SMBs while serving as an influential reference point for key stakeholders. I am thrilled to partner with hard working business owners that dedicate their lives to their work and need a reliable investor who they can trust to navigate the waters during transitional phases. Small business owners face several challenges coupled with legal barriers that oftentimes lead to the unsuccessful sale or transition of their business. I create only win-win opportunities for business owners and look forward to becoming true partners with companies I am proud to have a stake in. Published Articles: Thrive Global ACHR News TechBullion SmallBizDaily NBC EPN Yahoo Finance Seeking Alpha Seguin Texas ADP Bank Of America