Starting and scaling a business takes time and dedication…
But nothing is forever.
Do you have a rock-solid exit strategy? Does it guide your decisions right now, to maximise value later?
Because without an exit plan, you risk hurting your valuation. Taking on too much debt. Underinvesting in systems. Hiring the wrong people. Leaving millions on the table.
>> Don’t shortchange yourself by neglecting your exit strategy…
⬛ Focus on profitability. Say no to vanity metrics that don’t contribute to the bottom line. As you evaluate growth opportunities, prioritise moves that boost profit margins and recurring revenue.
⬛ Systems investment. Build infrastructure that enables scaling. Formalise processes and implement automation wherever possible.
⬛ Clean up the books. Get receivables in order, write off bad debt, settle disputes. A clean set of books shows potential acquirers you run a tight ship.
⬛ Owner distancing. Delegate day-to-day execution and build a team which allows you to shift key responsibilities.
⬛ Data. Provide acquirers with data on customers, retention rates and lifetime value. This helps growth decisions now and quantifies the loyalty you’ve built.
⬛ Seek an outside perspective. Work with partners who can assess your business objectively and work with you on improvements to drive your valuation higher.
If you’re thinking about a future exit, the years will fly by faster than you expect. Make sure your exit strategy is actually shaping decisions and driving growth, not just gathering dust.
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