Have you planned your exit strategy?
The Chronicle’s Business blog / Jerry bellune
This time of year many of us have much to be thankful for. And those of us who have been at it many years are starting to think about selling our businesses and what our exit strategy should be to retire. Business coach Ruth King says we need profit and wealth to have something to sell. Where is the wealth? 2 major places:
1. Your productive employees. They produce revenue for your company so that all revenue is not dependent on you.
2. Your recurring revenue clients. These are people who trust you. They provide recurring revenue and give you something to sell after years of hard work. What you could do:
1. Realize that focusing only on the profit and loss statement can be disastrous in the long run. You must pay attention to both your balance sheet and your P&L.
2. You must build recurring revenue to have something valuable to sell or pass along to the next generation.
3. You must build wealth. This means your current ratio – current assets divided by current liabilities on your balance sheet–must be increasing.
4. Open a savings account and deposit at least 1% of every dollar that comes in. We share such ideas in “Maverick Entrepreneurs’ Million Dollar Strategies.” For a $20 personally autographed copy, contact us at 803-359-7633.
Copyright 2019, The Bellune Co., Inc.