Ultimate Goal of having Business

What is your ultimate goal?

Begin with the end in mind. How you will grow the business not only depends upon what you want from it now, but also upon what you want from it in the long run. How will you exit from your business down the road? Consider these options:  

Selling: You can sell the entire business or your share of a partnership.  If you are in a partnership, it makes sense for both partners to know each other’s goals. Even if you provide services to others, your customer base and the “good will” that you have built up for your business over the years can be a salable asset.

Allowing others to take over: You can plan to pass on your business to family members who are involved, or allow an employee buy-out. There are different ways to structure take-overs so that the business and jobs you’ve created will survive.

Acquisition or merger: A larger company may want to acquire your share of the market, products or expertise. A company with complementary business may want to merge and form a new entity.

Issuing shares: You could plan to go public and trade shares in your company on the stock market. This allows you to raise money by selling some of your business without entirely giving up control.

Going out of business: In some cases, this might be the easiest solution, even if it offers you no financial gains. It’s almost never the preferred option, though, and can sometimes happen by default because you did not plan an exit strategy.

Having an exit strategy allows you to:

Q Separate yourself from the business. If you can see the business as a separate entity, you may be able to look at it with a more critical eye. 

Q Plan for your business to provide both current income and future  security. If you are looking for retirement income (or just a way to be reimbursed for all those hours that you worked for almost nothing), plan for it now.

Q Develop your business growth in ways that meet your goals. For example, if you want your business to be purchased, the strategies you take will be developed with that end in mind. Investors or potential purchasers will want to know that the business can function profitably without you.