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Do I need to think about exit strategy when starting my business?

On Behalf of | Aug 20, 2015 | Business Formation And Planning |

There are basic steps that need to be taken when trying to get a business off the ground. We suspect that is something that any would-be entrepreneur in Dallas can appreciate. You need a great idea, of course. You also need solid planning that takes all potential business legal matters into consideration. And part of that plan should include an exit strategy.

That last part might seem somewhat counter-intuitive to some. Why would you want to be thinking about getting out of your business even before it has gotten started? The answer, according to some business veterans, is that having an exit plan allows you to keep your ultimate goals in focus, share them with those you work with, and stay on course in rocky times.

Work smarter, not harder

Another advantage in having an end-goal in mind is that it can help you decide what is really important in the here and now. That’s a useful skill. By employing it, you may come to appreciate that it’s possible to make “Work smarter, not harder” more than a catch phrase.

This is not to say that there isn’t likely to be a need to make corrections over time. But even those can become easier if the way out is clearly defined. Here are some general thoughts from one expert on things to do to help guide exit strategy planning.

To start, have an objective in mind. Is your plan to sell the company at some point? Go public? Hand it off to your children? Maybe you want it to support you by generating residual income. Once you have that goal:

Track your business progress. Do it on a time frame of every six months to be sure you are headed down the right path.

Keep your plan relevant. The business landscape is changing all the time. If the end goals change, what changes do you have to make to adapt?

Manage your brand for the duration. Success doesn’t tend to happen overnight and it can be wiped out quickly if you don’t build your company’s positive brand and then maintain it in the eyes of your customers and partners.

Of course, the right team of professionals with you can help minimize possible risks.