Every business needs an exit strategy! Yes, that means YOURS too!

I hear it every day - "but, I don't have any employees"; "but, I am the business"; but, no one can run this business but me"; "but, the name of the business is my name"! My answer to all of these questions is SO WHAT!

If you are in business you have assets - something you have developed over time in business which is worth something to someone. Assets have value. Value may mean monetary worth - in other words, cash in your pocket before you walk away. But none of this is possible without an exit strategy!

I know as a woman entrepreneur myself that starting a business required all my time, all my energy, as well as a lot of my money. Therefore, I knew that there would come a day that I would want to cash out - and the goal was to do that before I burnt out!

Let me be clear - it is not just women entrepreneurs who make the mistake of not planning for an exit, men are masters at not planning. Statistically when an owner dies or becomes disabled most businesses cease operations. Unfortunately, most of us do not plan our death or disability and therefore don't plan the scenario for what will happen to the business if this is our fate.

So, where to start?

First, do you know what you assets are? Where the value is in your business? Is it a "secret sauce", a product, a unique service, a business process or model, a database, intellectual property and/or trademarks or patents?

What about equipment, software, hardware, inventory?

What about real estate, long term lease, special permits and/or licenses?

What about databases of customers and vendors? Do you have particular data on demographics unique to your industry?

Do you have key employees with contracts? Do you have customer contracts? Are you willing to stay for a period of time to train a new small business owner?

Everything above can be considered an asset in a business. I've worked with many small business owners who just don't believe they have anything of value only to find out that a strong case can be made for why someone might pay them up to $100K to acquire the business. You don't know what you have until you evaluate it!

But, in my experience, it is not just money that motivates many women entrepreneurs to think about an exit strategy. The 3 reasons every women's business needs an exit strategy are:

(1) Customers - women entrepreneurs care about their customers. They know that it has been their support that has built their business and made them successful. Closing the doors on the business means letting your customers down. Whatever product or service you have been providing for them can continue if and when you sell, transfer, merge, in other words, keep the business going. Just because you are ready to retire, try something new, or move on doesn't automatically mean your customers want to end the relationship. Planning an exit means your customers will still be able to get their needs met.

(2) Vendors - women entrepreneurs are loyal to their vendors. Vendors are the reason you are successful in business and, in many cases, may be responsible for why you have been able to provide the product and service your customers have depended on since your launch. In some cases, the partnership between the small business and the vendor is based on a mutually trust where if the business does well so does the vendor. Shutting the doors on your business puts your vendor at risk. In some cases, closing your business down could put a small vendor out of business. Planning an exit means your vendors may be able to continue the relationship with your business when yoiu  move on.

(3) Employees - women entrepreneurs feel a responsiblity to their employees. Employees are the people who have gotten you to where you are today. In many small businesses, a key employee has worked along with the entrepreneur since startup taking little pay at the beginning and doing whatever was needed to get the business going. Now that the business is doing well that employee depends on the company's success to pay a living wage. Just because the entrepreneur is ready to exit does not mean that the employee is prepared to find another job. A carefully planned exit often benefits employees beyond what is currently available. Best case scenario may mean a sale to a larger company with better benefits and long term employment stability.

Owning a small business means taking responsibility for the people who have helped you along the way. The best way you can take responsibility for your business is to plan for an exit.

I can promise you two things:

(1) You have an expiration date!

(2) Your business doesn't have to expire!

If you are interested in discussing how to evaluate your business email me at vicki@vickidonlan.com - it's up to you to take that first step.