In last week’s blog I discussed exit strategies, and have since been asked to share one of the specific strategies I personally used to help someone exit their business.
One strategy that helped me — and has since helped many others — is to create a one-to-three months (or years) of transition.
The Process, simplified, is this:
- You decide you want to exit your business, you call me or someone else to talk about it.
- You contact someone who might be interested in buying or taking over your business.
- You create a one-to-three months (or years) exit plan.
That exit plan means that you will get systems in place to exit the business, knowing that someone will be taking it on, and you’ll get money in return or at least be paid through the process of exiting without having to lose too much.
Whether you go with months or years, the process is simple, and the terms negotiable:
- In the first month or year, you work full time with full pay
- in the second month or year, you work half time, with half or maybe ¾ your original pay
- In the third month or year, you work as needed and maybe ¼ your original pay
Using this process ensures that there is interest in making sure the business succeeds.
If the entrepreneur is interested in making sure the company succeeds, their commitment to serving 1–3 months or years assures that any systems or needs are in place.
It’s important to take time to document processes or relationships with clients!
This assures they know a transition happening, but also that there is a plan to keep things moving exactly the same way. If not, they should be made aware that there will be changes, improvements or enhancements.
That is just one strategy I have used — there are plenty more!
BEFORE YOU GO
We see our blogs as opportunities for dialogue. Please share your thoughts as comments.
Think about creating:
- A pathway for your plan to be executed
- A pathway for the business to continue to exist and grow
- Other ways to engage the staff or partners to assure everyone is on board for the transition
Faris Alami is Founder and CEO of International Strategic Management, Inc. (ISM). He works internationally, presenting Exploring Entrepreneurship Workshops and other entrepreneurial ecosystem — related ventures.