When selling a business, timing is everything….
Start by putting yourself in a buyer’s shoe…
Would your business be attractive to them? Does it run on its own? Are you (the business owner) working in the day-to-day, does it make a profit?
If you could picture yourself looking from the outside in, would it be a “no-brainer” to buy, or would you run for the hills?
This approach helps us to determine whether it’s the “right time” to sell or exit your business.
If the business has seen strong sales & profit growth, runs with minimal effort from you, has well-documented systems and there’s room for growth in the market, then your timing is probably right.
If your business has seen little to no profit, you’re working 1,000 hours a week and everything relies on you, then it’s certainly time to plan ahead.
Therefore, the PERFECT time to start your Exit Plan is about 2 – 5 years away from when you would like to exit.
Why?…
This gives you enough of a ramp to build up sales, profit, people, systems and confidence, so that you can attract the right buyer and demand the best price at sale time.
Take a look at the diagram below, which illustrates what I mean:
As you can see, the sweet spot to start creating your exit plan is when you’re ready to remove yourself, build efficient systems, and keep growing sales & profits.
How do you know if you’re ready? Easy…
In my next blog, I’ll share a simple checklist you can use to find out whether its the right time to start Exit Planning for your future.
In the meantime, try thinking about where you might be along your business journey.
Till then,
