Something that you cannot do without

You owe yourself and more so your clients a visible, concrete and not to mention, a viable exit plan. You ask now, when and how do  you outline such strategy? Whether you just started out or business is currently booming:

It is never too early or too late. We can and we should make this happen.

Why you currently do not have one

You got caught up with the idea that having an exit strategy means you are predicting failure. This does and should not mean that you are scaring potential customers with doubts in your capability to go big.

No, this shouldn’t mean that you see yourself going under in no time; and that clients and investors might as well do business with your competition for investment security.

Because it never hurts to think long term

Your exit strategy should be the concluding piece after you have outlined your entire business plan. Making it unambiguous and transparent should send a message to your future clients and business partners that you are thinking long-term.

Beyond this message that you get across, it should be clear to you that this exit plan should influence your management style and at the very least, how you are to plan your company operations.

Passing it on

Let me paint a picture of what I am trying to tell in the previous paragraph. There is no safer and more secure way to keeping the business alive than passing it on to your children or someone within the family. The confidence that this brings is unmatched by any other methods. Should this be the case with your hotel or SPA, you need to be mindful of when to start training them and at a certain point, give them even bigger management responsibilities.

Simple doesn’t always mean productive

Even more common than passing it on, it is usually much simpler to just end ties by liquidating your assets. But then again, a lot of factors can affect the market value of your assets thus making this a sure way to reap the least revenue — which you should be using to settle all remaining debts that you may have.

The most common drawback in this kind of exit is the disadvantage that it presents when trying to sell your assets with time restrictions. You will most often be on the weaker side of the bargain since you are pressed in time and would sometimes be left with no choice but to be willing to sell them at a much lower price or matching your assets with buyers when it should be the other way around, ideally.

The short-term side of the equation

A merger could be a possibility short of going public. This is likely an option if and only if an opportunity is feasible. Just do not forget to consider the fact that it would be best for you to stay hands on as an “advisor” which still makes you involved. This however, could defeat the purpose if you’ve decided to exit and retire.

You’ve got the upper hand

These are just examples and remember that you always have the choice. Give yourself the upper hand, call us and we’ll do the thinking for you.