in our serie “P’s of Mind” in the process of buying and selling a business
"Plan your work and work your plan"
It is never more applicable when it comes to leaving your business or company, or getting into one.
Business owners considering a change or retirement, buyers or investors looking for a company or business to get into, both need to know their options; and of each option, the risks and possibilities/probabilities.
"Plan your work, work your plan"
For most entrepreneurs, the most important investment is a company, which is why it is logical and necessary to prepare your entry or exit and choose the most appropriate moment. In order to take advantage of the opportune moment, the entrepreneur must have prepared the way for that moment, that of leaving or entering a company.
The solution to preparing for your exit or entry is found in a plan that specifies the steps for a Planned Exit Strategy (ESP) or Planned Entry Strategy (EEP). The steps in these processes are very similar although different in their order.
This plan details the possibilities that exist to enter, start, exit, cease or transfer a business activity:
Succession by a child or family member
Succession by a third party or an employee
The purchase, sale or transfer of the company to third parties
The purchase, sale or transfer by/to current management
The purchase, sale or transfer by/to external management
The purchase and sale of assets or parts of the company
Starting an activity
The closure of the company