R. Shawn McBride recently spoke about planning for exits from the beginning in your business.
Hey, folks. Shawn here with you. If you’ve followed my work for any period of time, you know I tell people to build exit plans early. You start with the end in mind. You want to know where you’re going with your business before you even start. If you read my book, Business Blunders, in one of the chapters it says make exit plans early. It says to start with it.
So, we want to know the possible avenues of exit, where we might go with this business before you even get started. We want to have those plans early. We want to understand how we might exit from the business. But when do you build exit plans? People say, well when is that practical? As soon as you have proof of concept, as soon as your business is out of the box, as soon as you’re starting to get a little bit of stability, revenue coming in, customers, and things happening. If you don’t already have an exit plan then, now is the time. Now’s the time to start thinking about possible avenues of exit. Work it out with the partners, the multiple owners, and the investors. You want to talk about these types of things.
What’s going to happen if we get a large offer? When do we want to sell? Is it three years from now? Is it 10 years from now? Do we want to be an IPO company? What do we really want to do? There is a world of choices here.
Many people want to build a business for a certain period of time and then sell it, and that’s great. That is a very viable option. But you need to know that because that’s going to lead to different decision-making if you’re not going to sell the business.
So, you really want to understand where you are in the process, what you want the business to look like, and where you’re going with it. Then from there, you work backward to your exit date.
So, start with the end in mind. If you don’t have that end in mind, if you’ve reached a period of stability, now’s the time to go back and do it. Go ahead and get back in your business. Figure out what your exit plan is and get a good one built. You want to be very realistic about how you’re going to exit, how that’s going to work, and what you want it to look like.
If these are the types of issues you’re dealing with, we’ve got great videos and resources for you over at the R. Shawn McBride Fans and Audiences page on Facebook. Check it out. The McBride for Business YouTube channel also has great videos for you. Subscribe. Leave comments. Let us know what you need. Reach out to me. If you need coaching, training, you need me to come and help your organization, check me out at yourbusinessspeaker.com. We’d love to help. I’m here for you, folks. Let me know how I can help you.
Get your business valuation checklist. Just go ahead and download it. Work through it. Look for opportunities and let me know how I can help you. I’m R. Shawn McBride. We’ll be talking with you again very soon.
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This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Karim Sahli.
About the Author
R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at firstname.lastname@example.org or (214) 418-0258.