Exit Strategy Tips: Preparing for When, Why, & How You Leave the Industry
The problem with many exit strategies is their failure to exist. Whether this is your first or thirtieth year in the transportation industry, an exit strategy is an essential part of ensuring your long-term financial interests stay in tact despite a number of scenarios that could require you to adjust your career plans in the transportation industry.
For this article I simply want to provide you two tips that may begin to help you prepare for when, why & how you may leave the transportation industry.
The foundation of an exit strategy should be anchored by what can realistically be accomplished through a business sale at a later date. To clarify, if you are going invest years of hard work and capital into growing your business, make sure you clearly understand the likely future return of your investment. It may transform how you run your business, how you approach risks, as well as protect you from becoming too emotionally attached to your business. Too many business owners subject their “complete” long term financial interests to unnecessary risks because they do not clearly understand the likely future return on their investment.
There is a good chance that the time table and circumstances you have in mind for a future business sale may not materialize the way you intend them to. Make sure you have an exit strategy that expects the unexpected. The time spent preparing for “not likely but still possible events” will position you to save serious money, to prevent exhausting legal hassles, to avoid heartache and stress, and to protect your long term financial interests. Below is a list of scenarios that may require you to change your transportation industry career plans. Do you have an exit strategy that addresses these scenarios?
Partners who own the business decide to dissolve their partnership.
One of the owners dies or becomes disabled.
You or another owner get divorced and need cash for a settlement.
You want to do something more challenging, more fun or less stressful.
You don't have enough working capital to keep going.
The company needs new skills, a new approach or resources you can't provide.
I understand that very few people want to think about much less prepare for these scenarios. But business owners that do are most likely to protect their long term financial interests despite unfortunate surprises or unforeseen challenges.
No matter where you are in your transportation career, having an exit strategy is not only critical but empowering. Make sure you have an exit strategy in place that protects your long term financial interests.
If you would like to speak an industry expert about your exit strategy or a future business sale, please submit the contact form below.
