Exit strategy and succession or continuity planning are vital when it comes to long-term business development.  While most entrepreneurs focus on achieving business success, and aim to develop their company and grow their sales, they should never forget that it is not enough simply to develop a business that brings them wealth.
 
One of the most important aspects is planning how to release that wealth by ensuring that there is always a way to take that money out of the company – i.e. a clear exit strategy. That is why having an exit strategy or a succession plan is as important when you start your business, as it is when it comes time to either sell your business, franchise it, or, in the case of a family business, pass it on to the next generation.
 
Unfortunately an exit strategy is often never considered until the business owner decides it’s time to retire or move on. At that point it is often too late to implement a properly planned exit strategy and disposing of the business can become something of a scramble, which often results in significant value being lost.
 
           "Selling the business is the Number One planned exit strategy for most business owners"
 
Who would you sell the business to?
One option is to sell the company to a buyer who is already involved with the organisation at some level, perhaps in the development or management process.
 
Those in charge of strategic management, planning and development – typically the management team – are likely to be well placed to see how to further grow sales, develop the company, put in place successful systems and strategies. The aim of management teams in taking over the running and development of the company is to build on what they can see works well already and to explore new ways of improving what is not performing so well. One example is the acquisition of the fashion chain New Look by its founder Tom Singh, funded by private equity – an exit strategy based on a management buyout.
 
If an organisation is growing its customer base, then those who are loyal to the company or the brand and helping to increase sales – the customers – might well be loyal enough to want to buy the brand themselves. In the 1970s, the legendary Victor Kiam famously liked Remington Razors so much that “he bought the company”. Others who pursued the same path are Tony and Ridley Scott, two successful film-making brothers who decided to buy into the company that employed them and acquired Shepperton Studios (now part of the Pinewood Group). Chris Evans, a presenter on Virgin Radio, bought the entire broadcasting operation from his employers and in turn sold the company on, making millions in the process.
 
Selling a business to your customers, suppliers or associates is a definite endorsement that many of the tools and techniques you’ve been using are popular and will enable the organisation to thrive in the future.
 
Putting a successful exit strategy in place means planning to ensure continued business success

With the right exit strategy in place, it is possible to successfully sell a business, franchise a business or find a new structure to buy into a business. The key is always to make sure that even at the start, when establishing a business, to keep the exit strategy in mind.