How To Overcome The ‘Founder’s Dilemma’
Exiting your business can open the door to the next successful chapter of your life.
But it can also be hard to let go of your business until it reaches sufficient value. This push and pull is what I call the ‘Founder’s Dilemma’.
I’ve seen this dilemma stall an exit for years, ultimately risking no exit at all.
Here are three pathways to overcome the Founder’s Dilemma and optimise your business exit:
⬜ Focus on Scalability. Being scale-ready versus scaling up are different things. Work with people who can systemise operations, improve profit margins and expand your business, with or without growth funding. The more scalable the business, the higher the valuation.
⬜ Strengthen the Team. You can exponentially increase value by building a skilled management team to run the business without you. This is especially important if you’re considering a management buyout. Document processes, prioritise development and promote or headhunt top performers.
⬜ Sale Readiness. It’s not just getting your accounts in order. Are you prepared for due diligence? And have you created a highly saleable business that attracts the right buyers?
If you start exit planning early enough, you have time to make changes that increase your business’ appeal.
Don’t let the Founder’s Dilemma hold you back.
#SME #M&A #ExitPlanning #ExitLaunchpad
