13 May Scale or Vanish!

Why should you put in place an exit strategy sooner and scale using multiple vehicles

As a business broker, one of my jobs is to ask thoughtful questions to understand the needs and goals of my clients:

1. Business Owners,
2. Business Buyers, and
3. Investors looking for off-market deals to create cash flow, appreciation, and high return on investment when they exit.

One of the questions I ask is: “How do you plan to exit from your company?” Or “What is your exit strategy?”

Some entrepreneurs are very clear about their exit strategies. They go into detail and explain what they will do until they exit. These are sophisticated founders!

On the other hand, I met some who hadn’t given this question enough thought. They may respond differently, but their answers can be summarized as: “I’ll cross that bridge when I get there.” They put off answering this question—a huge mistake!

Of course, if one desires a lifestyle business and is not interested in going big, one shouldn’t worry about exit strategies. This blog is for those who want to create a high-performing team, scale, and ultimately exit with rewarding returns.

Here are the top three benefits of deciding one’s exit strategies sooner and in advance:

1. To gain clarity. Contemplating how one will exit forces someone to think critically and strategically. This process, at least, clarifies the pathway the business should follow until exit. Not all exit strategies require taking the same journey. What is yours? Do you have clarity?
2. To scale. There is no sustainable and profitable exit without scaling. Many founders overstay as startups. They don’t pull the trigger sooner and scale as soon as possible. As a result, they risk extinction. In today’s marketplace, you either scale or vanish! Staying small is too RISKY! To scale properly, however, a businessman needs to be clear about his exit strategies ahead of time. Scaling takes time, and the best time to start scaling was yesterday.
3. To avoid exiting with cheap valuation. Disaster can strike at any time without notifying. It could strike when one is least expected. Various unforeseeable reasons, such as fights between founders, divorce, bad health, retirement, accidents, relocation, and so on, could lead to a premature exit. Unless a businesswoman has done her homework before disaster strikes, an entrepreneur will walk away empty-handed. Scale TODAY, and don’t leave millions on the table when you exit prematurely…

There are multiple stages of exiting from your own company. The first is exiting from being an employee of the company to becoming a manager of your team. There could be many ‘exits’ while you’re still working in the business. Ultimately, if you desire a higher valuation when you raise money, sell the company, or take it public, your company must be independent of you.

The entire scaling and exiting process takes years. Therefore, if you haven’t begun this rewarding voyage yet, start now! The good news is that we’re here to support you throughout this protracted and challenging path…

Besides, there are multiple ways to scale. Unfortunately, many focus only on CAPITAL alone. Sadly, many startup founders exclusively focus on scaling using capital.

Though scaling using capital is one of the common ways, one should consider many other scaling vehicles. One should use more than one vehicle…

Scaling using multiple approaches will increase a company’s valuation and help raise more capital if that is the goal…

Before I finish this blog:

I. Organizational Consulting:

1. If you’re contemplating forming an organization, work with us and lay the proper foundation to make it easier to scale. We can help you clarify which industry and business type you should form. We can also help you craft your vision impartation slides, business plan, strategic plan, etc. We can also help you create your website, systems, and processes and train your founders and the entire team to launch the company successfully.
2. If you have already formed your organization or just bought a new one and are struggling to scale, we can help you recognize the various scaling vehicles and work with you to scale your company using more than one scaling method. To learn more about our organizational consulting services, visit https://www.successpws.com/consulting  Reach out also via [email protected] if you have any questions.

II. Business Brokerage:

• If you are looking for a business broker to represent you in buying a scalable business or listing your business and selling it quickly, reach out, and let’s discuss the details. My senior partner and I will also help you find the right business within a short period of time.
• If you would like to sell your own business or if you’re a buyer who doesn’t need a broker, we can help you evaluate it. We can conduct preliminary valuations or comprehensive financial and market analyses so that you can make an informed decision.
• If you’re a startup company looking for angel investors or a mature business seeking investors such as venture capitalists and private equity funds to buy your business, we can help you find the right investor who meets your criteria. To learn more about our business brokerage services, check out our website: https://azhabtewoldinvestments.com/businessbrokerage/ Reach out for any questions via [email protected]