There are five important elements to include in an exit strategy to make it efficient and successful. Starting with defining the desired outcome, it is a clear description of what business owners hope to achieve for themselves and their personal interests when they release themselves from their companies. So as with any business goal, owners need to define their goals before they can determine the best strategy. Secondly, they need to focus on optimizing value. To secure the best price or the deal terms for a company, the exit strategy should include ways that optimize company value. Next, they should also set a target exit date. With a target date in mind, it’s easier to develop an exit plan and coordinate the roll out of the plan with key supporting players. Keeping in mind that selling a company usually takes a year or more.
Fourthly, they should plan to have sufficient time to execute the plan. Those who plan ahead fare better than those who do not. Entrepreneurs should avoid ending up in a position where they haven’t prepared themselves, or their businesses, for their departure, but are forced to move quickly due to unforeseen circumstances
Lastly, as we know flexibility is important everywhere hence the entrepreneurs should remain flexible and regularly monitor and update their exit strategies as needed.