The importance of having a business exit strategy in 2024

Owning a business can afford you with unparalleled opportunities. You get a high degree of control over your professional life. The ability to take your organisation in whichever direction you like. That being said, as any business owner will know, with this freedom comes a high level of responsibility. 

A range of unexpected situations can arise that can profoundly impact your ability to run the business safely and effectively. Many of which will be highly unpredictable. Having an exit strategy in place can be an invaluable card to keep in your back pocket. Here’s why it’s so important to have one in 2024.

Unpredictable markets

The past few years have been a time of incredible market instability. From the global pandemic to events such as Brexit. These events have had often catastrophic effects on many business’s ability to operate. Leading to high numbers of business closures.

Developing an exit strategy with the help of a service such as Dexterity Partners can make it a lot easier to weather these storms.

Having a marketing strategy ready to implement and all your documentation fully in order means that you can find a potential buyer as soon as possible. A party that’s able to direct the business in ways you’re perhaps unable to at that moment.

Space for personal development

While rewarding in many ways, running a business can have huge effects on your personal life. It’s a huge commitment that can make it difficult to invest in other areas, whether that’s your relationship with your family or other areas of personal or professional development.

If you’re thinking about switching up your priorities shortly, then you must think about your exit strategy. Rather than waiting until you reach a breaking point. Start to think about it early on so that you’re not forced into a quick decision that could lead to selling at under your asking price.

Mitigate your legal and financial risks

It’s an inevitability that you’ll eventually need to hand your business owner to a fresh pair of hands. Preparing for that process well in advance is a great way of mitigating any legal or financial risks you might end up facing. Especially if your business is in a tightly regulated industry.

Your exit strategy doesn’t mean that you have to make any big commitments. It can be abstract, but importantly, it will mean that when it is time to make those commitments, you won’t have your hand forced by other players. 

Even if you’re planning on handing your business over to a friend or family member, you must take the necessary steps while you’re able. So that they’re not burdened with navigating financial and legal duties without your help.

While it’s always been important to have a business exit strategy, with increasingly volatile market conditions. It’s even more crucial as we get stuck into 2024. By getting advice from business brokers, solicitors and accountants. You can make sure that you’re fully prepared to hand your business over when the time does eventually come to do so.