Top Reasons To Exit Your Company
Many business owners focus their energy and attention on running their day-to-day business operations, like devising strategies, attracting prospects, meeting sales targets, managing staff, and assessing performance. Of course, meeting these daily challenges leaves little time to plan an exit strategy.
As with any other investment, the best time to think about your exit strategy is before you start a business. The next best time is now. While the thought of exiting a business you’ve built might be difficult, you need to consider your employees’ futures, your commitments to business partners and investors, and the needs of your family.
You want to ensure that you leave your business with a payout and settlement terms reflecting the hard work you’ve invested throughout the years. You need to start planning your exit strategy now because it will help you make strategic business decisions that will maximize your profits when you sell.
With a sound exit strategy planned early, you’ll increase your options and flexibility when you come to sell the business: whom you sell to, how much you are willing to sell for, and other terms of the sale. If you wait until you need an exit strategy, you might be pressured into making decisions that impact your final sale price and terms.
Reasons to exit your business might include the following:
New business opportunity
Maybe you’ve uncovered a new business opportunity with possible rewards greater than those your current business can offer.
Perhaps you’ve been approached to sell your business, and the offer looks too good to pass up.
You might decide to exit because of market uncertainty, including rising interest rates, impending recession, changes in consumer preferences, increasing regulation, the arrival of a new competitor, or changes in taxation.
If you’re struggling to achieve profitability after trying different approaches to turn the business around, you might want to cut your losses. Other reasons your firm might be struggling include:
– Inadequate innovation or marketing
– Inability to attract qualified employees
– Lack of financial resources
Entrepreneurs are often excited by the challenge of identifying and turning a business opportunity into a reality. But once the company is established, the challenges may be more operational in nature, which might get boring for some entrepreneurs.
Striking out on your own can be exciting but challenging. With everything resting on your shoulders, stress and isolation can set in, taking a toll on your mental health. To avoid burning out completely, some entrepreneurs choose to exit their companies.
Maybe your current business doesn’t fit the lifestyle you envision for yourself:
– You’ve achieved your financial goals and want to enjoy your life.
– You want to spend valuable time with your family.
– You have other interests you want to pursue, like travel or any number of hobbies.
Please contact us for a confidential discussion of your specific situation. Our team has experience helping business owners in various industries create exit strategies. From different industries to different locations, Symmetrical has relationships with lenders interested in lending and buyers interested in investing in new opportunities.