Exiting from a position
Exiting from a business position can be a lengthy and difficult process; however there are a number of things which you can do to make your exit run more smoothly.
Below is a list of guidelines to help you exit from a position:
Be sure that you really want to exit from the position
Firstly be 100% sure that you want to leave the position – maybe you are currently ‘not quite feeling it’ and think that exiting from the position is the answer, well maybe it is or maybe it isn’t. You must be completely sure you actually want to leave before undergoing sure a big course of action.
Think about the following points:
- Are you looking to get away from the business or just looking for a new lease of life within the existing one?
- Does your job still excite you?
- Do you want to follow other interests?
- Have you completed all of your goals and aims by being in this position?
- Is this position holding you back from other things that you want to do?
- Is your position providing you with enough money to meet your needs?
- Are you ready to leave the position? Timing is crucial – if possible you want to leave the job when it is suitable for you.
Set your goals and aims
It is vital when setting up a business that you have a clear outline of what you are aiming for – it is equally vital that you also do this when exiting from a position. If you have no clear goals or aims then leaving a position may become unclear and confusing.
So, ask yourself: ‘What do I want to have achieved when I exit from the position?’
Your aims or goals will help you to work towards leaving your position and can include:
- Reaching a certain sales target
- Turning over a set amount of profit
- Being able to buy that house in Italy
- To afford to live comfortably
- Reaching retirement age
- Spending more time with the family
Once you have set your goals and aims, try to start planning your exit sooner rather than later.
Tying up loose ends
When leaving a position, there are always going to be a number of things that will need sorting before you can leave. In order for you to leave relatively stress free and smoothly, make sure you tie up all the loose ends.
Things that may need a lengthy amount of time for planning could include:
- Selling assets
- Finalising deals with shareholders
- Handing over the business to a new partner / manager
- Sorting out the business accounts
- Tying up outstanding debts or collecting invoices
- Agreeing objectives with shareholders and those with a financial interest in the business to avoid damaging disputes
Deciding when to leave your position
If you have decided that you are going to leave your current position then timing is crucial. Preferably you want to leave at a time that suits you. Do not wait until the last minute or you may be forced to leave for a bad price or because you have to.
From a financial aspect, aim to leave when the company is in a position of financial strength. This may include:
- Growing profit margins: exiting from a business with increasing profit margins is easier than trying to tie up a business with static or declining margins
- Seasonal sales: does your business operate around seasonal timings? If so try and plan your exit after this period
- How does your business sector look? If there is a high level of confidence in your sector then you may find selling the business easier and for a higher price