GROWTH & EXIT PLANNING5 PRINCIPLES
WHAT ARE THE GROWTH & EXIT PLANNING PRINCIPLES?
The 5 Principles: the things you need to know to level up your game as an entrepreneur. They help you clarify what is important to you and how to align your growth goals with your ideal exit.
The result: you are clear on what you want your outcome to be, decisions become much easier and you know WHY you’re making them. Your exit becomes a non event because you engineered it exactly they way you wanted it to be.
Start By Taking a 5 Minute Survey
We developed a 25 question multiple choice survey that shows how ready you are in each of the 5 Growth & Exit Planning Principles. Getting clear on the principles are the foundation to increasing the value of your business and maximizing your exit options.
The 5 Principles
What do you want from your business?
You need to know what you want from your business and why before you can determine what outcome is ideal for you.
What would make you happy
if you sold your business and why?
The first step to determine what you want is to fully understand the relationship you have with your business.
The 8 sections in the GEXP Vision Wheel™
Directions: rate the importance your business plays in different aspects of your life. The center of the wheel is 1 (representing that your business plays a major role) and the outer edges as 10 (meaning that you’re not reliant on the business to accomplish it).
Rank each area by drawing a straight or curved line to create a new outer edge. The new perimeter represents the wheel of your business and life integration. If this were a real wheel, how bumpy would the ride be without your company?
Everyone jumps into entrepreneurship for different reasons. Financial freedom, the ability to control your time and decisions, to disrupt an industry, for family legacy or leaving a dent in this world. Reconnect with what made you start your business in the first place.
Make sure your vision is clear on what you want and why so you can feel proud before, during and after whatever exit is your target.
How much money do you need, or want, to make when you exit?
Your financial targets (how much money you need to maintain your lifestyle) will impact many decisions in your plan, your timing, exit option(s) and control over the process.
Calculate how much money you need to walk away with in order to live your ideal lifestyle. This will determine if you have a gap between where your business value is and where it needs to be.
The answers to these questions will determine when you can exit, the structure of the deal, to what buyer and on what terms. You should maximize the way you get your money out of your exit and your financial targets will determine how you do that.
What are all your exit options?
There are a ton of ways and combinations to sell or transfer your business.
Each exit option will impact a multitude of variables:
- The value that is placed on your company
- How much you get paid at closing vs how much you take over time
- Your involvement and relationship with the business post closing
- Your control and involvement over the process
Once you know what you want from the business and why, and the financial targets you want to hit, then you have a process to rate each exit option. With the clarity from the first 3 principles, you will have control to pick the exit you want, with specific timelines, valuation targets and terms.
Growth & Value Drivers
Are you increasing the value of your company?
You should always be looking at your company from a buyer’s perspective, regardless if you want to sell or not.
The value of your business depends on how easily you can transfer your free cash flow or EBITDA to another person or buyer. Every business has ways it can increase it’s value if measured and executed correctly.
Don’t be victim of the “flashy object syndrome”. Every decision you make should be driving you toward increasing the value of your business with your ideal exit target in sight.
Team of Advisors
Do you have an elite team of advisors?
Surround yourself with the right advice at the right time for the right investment will ensure you maximize the value of your business and happiness…
You wouldn’t expect a bunch of contractors to build your perfect house without a blueprint or detailed budget. Why do you expect that of your advisors?
If you know what you want and why, then all of your advisors can be working to optimize what the outcome you’re trying to accomplish.
Apply for the GEXP Accelerator™
Join 10 Entrepreneurs in a 12-Month Growth & Exit Planning Accelerator that Gives You Focus and Clarity on How to Grow and Exit Your Company.
Hire Our Team
If you want to roll up your sleeves and get stuff done, hire our team to help you design and execute on a growth & exit plan.