When entrepreneurs and small business owners start seeing their first signs of success, it’s seen as an opportunity to expand and continue growing the brand, however, during these first few years of growth there is something people often overlook that can save them stress and money in the future if they just do a little planning upfront…The Exit Strategy. Keep this in mind as you plan for the future.
Big Picture & Scalability
In the hustle and bustle of launching your business, it’s easy to just pick a solution that “fixes the problem” now…. the band aid solution. While it saves a little money now and keeps you limping by, short-term solutions aren’t always the best choice. It’s important to keep the big picture in mind and consider whether the solution will be able to grow with your business. If it can’t scale, it may be worth taking some extra time now to save headaches in the future.
The Correct Management Team
Even though this business is your baby right now, there will come a point when you can’t do everything. You eventually have to put a team in place and a system that will run the business EVEN when you aren’t around. If you ever want to step away from your business and retire, this step is critical… and too often business owners forget this step and it hurts their ability to sell when the time comes.
Invest in Systems and Processes
When you are making decisions with the end in mind, think of the type of company you would want to buy. Would you want a business that has great systems and documented processes in place or would you want a business that relied on tribal knowledge and one or two key people to make everything operate? The answer is obviously the prior and it’s important to invest in good systems and take the time to document and implement procedures for your company’s long-term health.
The Right Structure
Having the right entity structure in place from the outset is essential with the end in mind as it can save you lots of money in unnecessary taxes.
Let Us Help
ABJ Business Solutions will help businesses just like yours plan for the future and make decisions with the end in mind. Get in touch with us today, and we’ll help you develop an exit strategy that works for you!