image via google images

I’ve been wanting to write about exit strategies for a long time.  It can be such a downer subject, though, and I tend to be one who writes based on my mood, so I quite literally saved today’s subject for a rainy day.

I forged into my business with a half written business plan and a lot of fervor.  Needless to say, those only got me so far, and I continue to learn and re-direct my business, sometimes making changes as often as every week.  I think you have to be ever-changing in this business, always improving as much as you can.  One thing I had never really considered before was when and how I would end my business.  When I began to consider this, I started to seek out articles on the subject and it wasn’t long before I had a sense of what to do.

Basically, you have a few different scenarios for your exit strategy.  Those are:

Sale – sell the business to someone else or to another company

Merger – combining two companies to form a larger one

IPO – sell your company via the stock market in an Initial Public Offering

Buyout – someone in the same line of work comes in and buys your company from you

Liquidation of Assets – If you have no debt, you can shut down your business and sell the remaining assets that you have.

If you are a wedding planner like me, the options that are probably most realistic and most appealing from the above are: sale, merger, buyout or liquidation of assets.  Think about where your business is now and when you want to make your exit.  If you are looking to sell in any form, you need to work hard NOW to add value to your business.  Chances are that a buyer will look at performance for past years, perhaps even going back to your business opening. 

In my situation, I want to retire in approximately 10 years.  I have very little in the way of assets, but I also have zero debt.  Because I am a small, boutique planner, it isn’t likely that anyone will want to purchase my company, and if anyone did express such an interest, I would be hesitant because I feel very personally linked to my company brand.  I have no desire to merge with any other company, so I will probably liquidate my assets, which mainly consists of lots of wedding “props”, and the rest will be absorbed into our household.  (I will still want to have a printer, computer, iPhone, wireless router, office furnishings, etc., even when my business ceases to exist.)

In January of this year, I attended Entrepreneur Magazine’s Annual Growth Conference which happened to be held here in Atlanta.  My sweet friend, and planner extraordinaire, Kelly McWilliams came into town and we had lots of time to chat about business in between sessions and in the car.  She said something that stuck with me and made me want to come to a resolution on my exit strategy as soon as possible.  She said, (and I am paraphrasing) “I am always thinking about the next thing for my business.  Brides don’t want old planners – there is a shelf life on what we do.  I need to be ready for the next thing after this.”  Within a few weeks of the conference, I had decided when to retire and began thinking about what to do in the next phase of life following my business closing.  While initially thinking about getting out of the industry made me very sad, thinking about what to do next has been really fun for me as well.

What about you – what’s next for you and your business?  I’d love to hear about it!