info@cloverone.com
info@cloverone.com 
Having an exit plan is not only to sell your business, but it is an exercise to maximize the valuation of business by strengthening its capabilities.
It is estimated that 7 out of 10 privately held businesses have no succession plan to transfer the business to the next generation of owners. What does that mean to you? It means that if you do not currently have a plan in place to transfer your business to anyone but someday you will think about selling your business. And, that day might come sooner than you anticipate.
If you are considering selling your business you should start preparing at least 1 to 2 years in advance. A more valuable business, producing more cash flow now, predictability of long term growth increases the value of the business and attracts more qualified buyers or investors.
As the old saying goes, “you should start planning to exit the business the day you start it.” You certainly don’t want to plan on misfortune, but it’s never too early to plan on how to leave the business.
A good exit strategy will have the following:
1. Begin with the End in Mind
Even if exiting is decades away, it’s important to keep that end game in mind. It can shape the decisions you make now such as whether or not to reinvest funds in something that will grow your business.
2. Selling is Just a Business Process
Selling a company is just another business process. It’s a process just like product development, financing plan or marketing campaign. The biggest difference is that the exit process often makes more money for the shareholders than any other process during the company’s lifetime.
3. Success in business:
A planned sale allows for your goals and objectives on your timetable bringing lots of indirect benefits. A good exit strategy would define your long-term goals, clarify your visions, streamline organizational processes, make the company independent from its owners, and such exercise would enhance the possibilities of success.
4. Maximize valuation
Designing and executing the exit well can easily increase the entire value of the business by 50%, or more. That is why the exit is often the most lucrative of all business processes.