"Begin at the beginning," to quote the King of Hearts from Alice in Wonderland. That's how most people approach business ownership, and on its face, it seems like a smart strategy.
According to the U.S. Bureau of Labor Statistics, about 21% of businesses fail in the first year, nearly 50% fail by year five, and about 65% fail within 10 years.
So to avoid becoming a statistic, most entrepreneurs focus primarily on the first five years. But it would be a mistake not to also think about preparing for a potential exit.
What is your exit? Do you plan to sell the business, pass it to a family member, partner or employee or dissolve it?
While you might not readily know the answers to these questions, by following the five best practices below, you can both build your business and put yourself on stronger footing when the time comes to begin your next act.
1. Keep your financials clean and transparent
2. Make sure the legal structure is aligned with your goals
3. Know when to scale your business
4. Protect yourself
5. Begin thinking of your long-term plans
If you "begin at the beginning" but also think about where you want to land, you will be creating a road map to achieve not just your business goals but your vision for your life.
Contact me if I can be of assistance in preparing to sell your business.
