Stephen Covey in his books about “principle centered leadership” often use the phrase:
“Begin with the end in mind.”
Covey was convinced that the best leaders are people who can see the long term goals and big picture results of their work. At Mediastead, we agree.
For this reason, we encourage every business owner to create a formal exit strategy. By knowing the end target, strategic marketing decisions can be made much more effectively.
There are three basic exit strategies:
- Sell the company. Create a highly valuable entity that can operate independent of its owner, and focus on the book value of the company. In this strategy, growth is more important than profits.
- Give the company away. The owner operator creates a profitable company, and groom someone to take over future operations. Sometimes this is done through sale, other times the owner retains ownership. In this strategy, profits and stability are more important than growth.
- Close the business. Sometimes exiting a business means closing the business altogether. This is the case when the owner operator is critical to the success of the business. They have a particular talent that can’t, or they choose not to, be replicated. In this strategy, profits are critical. The owner must extract as much cash as possible as quickly as possible.
Every business is different, and the personal goals of the business owners are varied. Whether you strive to create a monument, a golden parachute, or work hard and retire young, planning your exit, even if it’s 40 years away, can help structure your marketing strategy today.
Let the Mediastead team help you choose the objective right for you, and craft the strategic actions to success.