Having a solid exit strategy in place often doesn’t occur to many business owners. It can seem as if it’s only something to worry about if a business somehow runs into trouble. The truth is, though, that a well-thought-out exit plan can provide several benefits to owners of even the most successful businesses.

In fact, it’s a good idea for budding entrepreneurs to consider their exit strategies as part of any start-up plans they may have. The last thing any business owner wants is to be stuck with an unviable business with nowhere to go should anything change. After recent years of global pandemics, Russian invasions, and AI breakthroughs, it’s a naive businessman that isn’t prepared for unexpected obstacles now.

We spoke to Rick Smith, founder and managing director of business consultancy, Forbes Burton, to ask why having an exit strategy can be beneficial for company owners.

It may be the end goal for those looking to sell

While some people run a business to provide them with a steady income, others do it with the aim of eventually selling for a substantial price. For those people, their business is more of an investment, and as such, their exits would hopefully see them achieving their goal of a healthy sale fee.

For businesses such as these, an exit strategy helps owners stay on track. There may be temptations to cut corners or even accept lower bids along the way, but by referring to their exit strategy, they can see at a glance the exact figure that’s needed for them to achieve their goal.

You may be surprised at how valuable your company is

Receiving a company valuation as part of a sale exit strategy can provide a useful metric as to how well your business is doing. You may even be tempted to cash in now if the valuation surprises you.

Provides peace of mind for those fearful of a downturn

With so many economic headwinds for UK businesses to contend with, it can sometimes feel to business owners as if they’re flying by the seat of their pants. Uncertainty is, sadly, something that modern companies have had to live with, but having an exit strategy in place can help to salve fears of what could happen. By having your exit worked out in case of the business failing, you’re able to set plans in motion to get out quickly and efficiently, potentially saving yourself money and stress in the process.

Keeps you on track for passing on to a successor

Instead of selling to an outside party, or closing down, many owners are keen to sell to an employee, or even pass their business over to a family member. An exit plan can allow directors to crystalise ideas for who they may like to hand the reins of the company over to eventually.

This allows owners to effectively start to groom certain employees or family members for the job. As owner yourself, there are few better qualified to understand what qualities are needed to replace you, so you should have an idea of if anyone close to the business fits the profile.

Even if you have somebody in mind though, you will still need to check in with them occasionally to ensure that they’re not only still able to take over, but also that they want to. It’s little use deciding on a successor and then not following up on that for years later. Your successor may land another job, follow a different career, move away with family, or simply change their mind. Because of this, be prepared to have an exit plan that is flexible enough to handle any changes along the way.

It’s never too late to get started

Whether you’re preparing for an exit soon, or just making hay while the sun still shines, a good business consultant will help you to put everything in place to ensure any future exit is successful.

Forbes Burton have exit strategy specialists on hand that can take care of the process for you, walking owners through every step and avoiding the common pitfalls. Free no-obligation consultations are available for anyone considering their exit options. Call 0800 975 0380, or find out more about our exit solutions.