You Need To Understand Your Exit Number In Advance
When it comes to selling your business, it’s important to have a clear idea of your real exit number – the amount of money that you need to have in order to make your life comfortable for the rest of it, and to take care of your family, both now and in the future. This number will be different for everyone, and it’s important to really think about what you need, rather than only focusing on the market value of your business.
Understand What You Really Need
For example, one of my clients was told that his business was worth £100 million. He still owned 30% of the business, so he assumed that his number was 30 million. But when we talked about it, he realised that he didn’t actually need 30 million. He didn’t want Ferraris and Learjets…he only needed a certain amount of money to take care of his family. His real number was actually closer to £5 million.
Take A Strategic Approach To Selling Your Business
When you really understand your number, you can work towards it and minimise risk in your business. You can structure exit deals in different ways. For example, you might do a deal that gets you a smaller amount of money upfront, but has the potential to earn you more money later on.
Knowing this means you won’t waste time waiting to sell your business for a number that you don’t actually need.
Bottom Line: Have A Plan Around Your Exit Number For A Comfortable Future
I think that really understanding your exit number is a very different way of approaching the process of selling your business. It’s about being realistic about what you need, rather than just chasing the highest possible price. This is something that we focus on in the KYN Mastery Group, so that you can make better-informed decisions on your future.
The bottom line… if you understand your exit number, you can make the most of the sale of your business, plan for a comfortable future and not waste time trying to sell for a number you don’t need.
So, think about it… what’s your exit number?
