Planning an exit strategy is probably the most commonly overlooked step when starting a business.

In fact, many small businesses don’t even think about it until the time comes to sell and then they realize the amount of work involved in preparation for it, and wish they had started sooner.

But just as it would be unthinkable to set off on a journey with no idea of the destination, having the end of your business in mind, at every step of the way, is probably one of the best things you can do for the health of it.

In an article in FastTrac, the author talks about the types and benefits of a sound exit strategy and points out:

“Unfortunately, those entrepreneurs who do not plan an exit strategy will, at some point, exit from their businesses unprepared. Some entrepreneurs exit the business for reasons other than wealth, retirement, or the desire to pursue other goals. Death, disability, family circumstances, and divorce from partners, sometimes lead to an early exit.”  (FastTrac)

This past year has shown how quickly the world around us can change.  Having plans to deal with uncertainties the future may bring is a great way of staying focused and balanced, and an exit strategy is a powerful tool to support those plans.

Jacobie Olin is President of C2G Advisors, a Nashville-based consulting firm focusing on real estate and vacation rental sales, mergers, and acquisitions, and shares his recommendations and advice on laying the foundation for the future of a short-term rental business.

In this episode you’ll hear:

• What is involved in an ‘exit strategy', and how an owner or manager can prepare for the eventual sale of their company
• Why you should know about unit growth and revenue growth per unit
• The three activities every short-term rental business owner can do right now
• Two primary ways of looking at revenue
• Why you should work towards not being 'the face’ of your company
• The importance of keeping homeowner contracts up to date
• What EBITDA means, and how to calculate your company’s value
• The three mistakes sellers make most often
• What happens when a seller hires the wrong attorney
• How to avoid tire kickers
• The role of an advisor and why engaging one is beneficial

Links:‍

C2G Advisors

Why all entrepreneurs need an exit strategy (and how to plan yours) (FastTrac)