Your Exit Strategy Isn't About Selling Your Business

When I think about exit strategies, it is with a wry smile because I've actually exited a business myself. But it wasn't the carefully planned exit you read about in business books. It was unplanned, it was stressful and we had no choice.

We had built a successful business as a specialist tour operator. We found a gap in the market for tailor made rail holidays and our product base and revenues were increasing year on year from £500k turnover in the first year to almost £10m ten years later.

That growth had involved diversification of both our product offering and the markets that we operated in which added complexity to our business model. We failed to invest in the financial advice that we needed and cash flow became a major issue due to the financial protection that was required when operating in the highly regulated travel industry. In the end, our decision to exit was not by choice; we simply no longer had the cash in the business to continue operation.

The Lessons Learnt

Looking back, there are many things I would do differently. One of the biggest lessons I've taken from that experience is that an exit strategy isn't really about selling your business. It's about having choices. You don't have to be planning to sell

When you're running a six-figure business, the idea of an exit strategy can feel a long way off. Perhaps you're still building your team, getting your systems in place and trying to work out how to grow without working every hour yourself. Selling the business might be the last thing on your mind.

But I think there is value in thinking about what would happen if you weren't there. Not because you are planning to sell but because life changes.

🙋‍♀️Perhaps one day you want to take six months off and do something completely different.

🙋‍♀️Perhaps you want to start another business.

🙋‍♀️Perhaps you want to work three days a week.

🙋‍♀️Perhaps you want to spend more time with your family.

🙋‍♀️Or perhaps you simply want to be able to take a proper holiday without checking your phone every few hours.

Whatever the reason, wouldn't it be good to know that your business could continue without you?

Build a Business That Gives You Choices

I've been reading quite a bit about exit planning recently, including Adam Coffey's The Exit Strategy Playbook. One of the things that struck me is just how much preparation goes into creating a business that is ready for an eventual exit. That preparation isn't just about getting the business ready to sell. it is about building a good business in the first place.

John Warrillow, author of Built to Sell, makes a similar point. A valuable business is one that isn't completely dependent on its founder. That means having reliable processes, a strong team, predictable revenue and knowledge that doesn't exist solely inside the founder's head. These are all things that make a business easier to sell, but they're also the things that make it easier to run and that's the bit I think is particularly relevant to smaller businesses.

What happens if you step away? Imagine you couldn't work for three months.

👉Would your business continue?

👉Would your clients still be looked after?

👉Would your team know what to do?

👉Would the bills be paid?.

👉Would someone be making decisions.

👉Would new enquiries still be followed up.

👉And most importantly, would your customers even notice that you weren't there?

If the answer is no, that's not a sign that you're no longer important. It's a sign that you've built something valuable. And if the answer is "absolutely not, everything would fall apart!", you're not alone. For many founders, the business has grown around them. They are the person who wins the work, manages the clients, solves the problems, makes the decisions and knows how everything works.

It works until it doesn't.

Your Team Is Your Exit Strategy

This is probably the biggest lesson I would take from my own experience. You don't necessarily need a huge team but you do need a team you can trust. People who understand what you're trying to achieve and have enough confidence and capability to make decisions without constantly coming back to you.

That's one of the reasons I talk so much about leadership when I work with growing businesses. Building a team isn't simply about giving yourself someone to delegate tasks to. It's about creating a business where responsibility is shared.

☑️Where people understand the vision.

☑️Where they know what good looks like.

☑️Where they have the information and authority they need to do their jobs well.

☑️And where you can gradually move from doing everything to leading the business.

That's a very different proposition.

Don't Forget the Numbers

My own experience has also made me particularly conscious of the importance of cash. A business can be growing. It can have great customers. It can be profitable on paper and yet still run out of cash.

That's why understanding your numbers is part of building choice into your business. You need to know what's happening with revenue, profit and cash flow; you need to understand where the risks are and you need to be able to see problems coming early enough to do something about them. Good financial management isn't just about preparing your business for a buyer; it's about making sure you remain in control of your choices.

Start Building for the Future Before You Need It

Verne Harnish's work on scaling businesses makes a similar point from another angle. The foundations of a scalable business are the same things that make a business more resilient: clear strategy, good financial control, effective systems and processes, and a strong leadership team.

None of these things are particularly glamorous. but they are what allow a business to grow without everything continuing to depend on the founder. And that, ultimately, is what I think an exit strategy should mean for a smaller business.

Not "How quickly can I sell?" but: "How can I build this business so that I have choices?"

What would your choices be? You might never sell your business; you might run it for the next twenty years. But wouldn't it be reassuring to know that you could sell it if you wanted to or step away for a while or bring someone else in to run it or take on another challenge….or simply take Friday afternoon off without everything grinding to a halt?

That's the kind of freedom I'm interested in, because building a successful business isn't just about making more money. It's about creating something that supports the life you want to live. And perhaps the best exit strategy isn't about knowing exactly when you're going to leave. it's about making sure that, when the time comes, you get to choose.

That's what building a business your way really means.

About the Author

Sarah is a business founder, MBA graduate and coach who has built and scaled businesses to over £8 million in revenue with teams of up to 25.. She now helps ambitious founders gain clarity, build motivated teams and create businesses that support the life they want to lead.

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☑️Recruit the right people first time so they fit with your core business values.

☑️Motivate your team and communicate effectively so they consistently deliver beyond expectations

☑️Step back from the day job and replace yourself with your team.