Plan Your Exit!
It is remarkable how many directors and shareholders do not have an exit strategy. The company becomes their life and they fail to consider what will happen when they eventually want to retire or, heaven forbid, become sick.
An exit strategy is a vital requirement for any investor and should be considered from the outset. It may be a 3, 5 or even 35 year plan but it is something that should be considered. There is no point waiting until you want to retire only to find out that your business is unsellable for the simple reason that you have “become the business” and can’t easily extract your self from it.
So, start making your plans now. Make sure you have the right people in place and start delegating authority. Your business needs to be portable so anybody can buy in and continue to make money from it. It needs to be able to continue working for you and making money even when you are not there. That way, you can take a holiday without worrying or, if you become sick, it will carry on operating.
Make sure that, when the time comes, you can easily back out knowing the company will be able to continue without you. By doing so, you will increase the saleability of the company and maximise your potential future recovery for its sale.