Guest Post by: Tumi Frazier, founder of Tumi Frazier International
Do women entrepreneurs start their businesses with an end in mind? Successful entrepreneurs start thinking about exiting or selling their companies earlier on. Are you aiming high enough? Don’t wait until it’s too late to consider an exit plan as potential investors want to know your long-term plan.
An exit strategy is just as important as starting a business because you have to be very clear about your plan from the onset. When you have an exit plan, you set different strategies and goals that inform the operations of your business, more than merely running the day-to-day business or becoming an employee in your business.
If you plan creating a family legacy, you need to integrate a succession plan in your business so you can have enough time to appoint and mentor your successor including a handover period. If your plan is to eventually list your company on the stock market you have to follow specific regulations and corporate governance ahead of time.
There are various methodologies to consider when planning exiting your business.
Some business owners choose to liquidate; others may choose to sell their enterprises or be merged or acquired by other entities; whereas others may sell shares to the public.
Positioning your business as an attractive acquisition can be very profitable. You can do extremely well by selling to an acquirer willing to pay a premium because they realize the value of what you have created and the opportunity this value can generate for them in the market.
Whatever you do, decide what the best exit strategy is for you and your business.
Tumi Frazier is a South African entrepreneur, professional speaker, author, TV personality, consultant, and founder of Tumi Frazier International, Tumi Leadership Academy, and Tumi Foundation. Tumi is an internationally acclaimed Leadership and Change Management expert who has worked with high profile clients and organizations across Africa, United States and Europe. Tumi has authored 4 books: Courageous Stories of Inspiration; In the Midst of the Storm; Stepping Stones to Success; and Your Moment. Follow Tumi Twitter | LinkedIn
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