Starting a new business?
First task plan an exit strategy!
Adrian Kinnersley, managing director of Twenty Recruitment, discusses how best to plan an exit.
It might seem strange to start planning a business exit strategy as soon as you launch a new company, but at Twenty thats exactly what we did.
Its hard work building a successful, valuable business and the ultimate reward is to sell it and enjoy a high return on your investment. Furthermore, people who build their business with the aim of some form of transaction to change the ownership have a fixed goal right from the start and that is to have the right people and processes to enable the company to expand into a highly profitable entity.
This approach takes into account the fact that the founders may not be the right people to expand a business further once it has reached a certain size. In every company, there comes a time when a new perspective is required if the business is to carry on moving forward.
But how do you go about building a business that somebody else is going to want to buy? Theres a lot of competition out there and your business will need to be something special if you want to walk away with a decent ROI.
We hear a lot these days about the benefits of strong brand management and this is vitally important if you plan to sell off your company. Get out there and get noticed! The web and in particular our love for social media, has opened the door for industry experts to get heard quickly and easily by a worldwide audience.
One of the most valuable assets a company possesses is its workforce. Deciding on the culture and values of the business right at the start ensures that everyone understands the support they will receive to develop their careers. Its also worth considering a share option schemes as incentives to encourage employees to help build the company into a successful entity.
Back office staff are just as important as those on the frontline. Companies will not prosper unless they have strong financial management. A prospective buyer will want to look at budgets, cash flow, forecasts and other financial documentation.
Weve more on planning an exit here.