Prepare an Exit Strategy Sooner than you Think
When preparing to leave a company as the business owner, most people tend to take on their exit in the fashion that’s most fitting for them. Some help to prepare their successor for the role before leaving, and some just decide to sell the company as a whole and settle for money. But how many can say they’ve created an exit strategy based on the reasoning for their exit?
The Atlanta Small Business Show recently interviewed former GABB president Michael Ramatowski to learn the significance of implementing an exit strategy for a business. Michael is the CEO of RamBizGroup, LLC.
In the interview. Michael explains that exit strategies can be used for personal and business-related relations. He focuses on businesses, as business exit strategies are his expertise, and emphasizes that the majority of businesses do not have a strategy in place, and the ones that do are not funded as they should be. When asked when is the best time to create a strategy, he says at the beginning! “I have an attitude- in everything you do, you do with the end in sight,” Ramatowski advises. “The first day they start thinking about doing a business” is when people should also begin to plan out their strategy.
Another key component of creating an exit strategy is confidentiality. You do not want your competitors to be aware of what’s happening. It may also be important to keep that confidential information from key employees and even customers or clients as well because it has the ability to install fear within them and create the myth that something could be happening to the company. In reality, selling a business could be the best thing for the company, not something to be afraid of.