Every business owner should understand that the goal from day one is to prepare the business for your exit.
This may be some years away, or closer than you would like.
There are certainly many financial planning tools you need to take care of, such as a will, shareholders agreements, and the like.
But here are five things to have in place that you might not have put on your list:
1. A solid strategy for a tiered exit; being able to walk out the door with a cheque may not be in the cards.
2. A distributed management model; a company under the singular thumb of an owner has sSignificantly less value than one that “runs itself.”
3. A commitment to take regular vacations; being away from the business for extended periods of time is a legitimate way to test your management structure.
4. A clear understanding by family and key staff what your exit strategy is.
5. A contingency plan; ensure that family and key staff know what is to happen if you are suddenly unable to continue.