What is your goal for 10, 15 – 20 years down the road?

I’m not talking marketing goals, or even sales goals.  I want to know your exit strategy.

You know, that golden ring we all reach for – it’s called retirement.

People talk to financial advisers and they set up their 401ks.  They invest in their future by putting away sums of money that will help them live their luxury life without someday, pulling in that 9-5 work day. This is perfect!  Exactly what you want to think and plan for regardless if your retirement is in 3 years or 30 years.

But what about your business?  What happens to your business when your “Open” sign gets turned to “At the Beach”?  

You may have thought about leaving your business to your children. Maybe you’ll be content with just shutting the doors. Either way – I want you to think about value and how to increase it.

Your first thought may be that the value lies in your inventory, if you have a physical store. The remaining inventory on the shelves and the shelves themself. Even the property will be an asset to sell.  If you have an online business you may consider your domain and your products as your assets.

One thing that people tend to overlook as an asset is the one thing which makes their business succeed.  Their customers.

I was talking to the owner of a highly successful local carpet cleaning business.  Thrilled with his service and knowing my very chaotic schedule,  I asked him if I could get put on a follow-up cleaning for every 6 months. He told me to call when I was ready to reschedule and he’d fit me in. Of course the strategist in me immediately went to work and the questions started flying from my mouth?  Don’t you have a follow-up system?  How do you contact your customers?  Do you have them all in a data base?  What if you want to run a promotion? What about sending out thank you cards?  He simply stated he was so busy, he’s never had the need.

Shock.  Absolute bewilderment.

Let’s think exit strategy.  

When this carpet cleaner wants to retire, whether it’s handing his business to his son or selling it – how much value can you place on a customer base? Let’s say he does pass the business to his son and his son misses a few beats and isn’t as busy as dad. If he had a customer base to fall back on he could announce dad’s retirement and a special promotion.

If there isn’t someone to hand the business to I can guarantee that a competitor would pay a nice little sum to get the contact information of his client list.  It’s not just the names and addresses.  It also can include systems and processes.  The hows and whens of his everyday business.  Because if he is successful – someone out there is just waiting for that same opportunity.  With systems, processes and a customer database  you would be selling a turnkey operation.  

Now that’s worth something!