Do you have an end game in mind for your business? For many, the goal is simply to have their own business, make money and live how they want to live – and that’s perfectly understandable. After all, people do tend to start their own business for a variety of reasons (check out our article on the different reasons why people start a business).
But in starting and subsequently running their own business, many business owners miss an important step in their overall business goal planning. And it’s a step that impacts how they run their business – today and in the future. So, what is that important step? It’s not knowing what their business end game is!
Do you need a business end game?
A lot of business owners are creating a business to serve them in the present moment – to reach a certain level of income, lifestyle, freedom etc. But what’s going to happen further down the line? It’s something many business owners don’t think about, let alone plan for. So, what is going to happen when you’re older and no longer want to necessarily keep working in your business? What’s your business end game?
When you’re ready to take a step back, if you’re looking to do anything other than close your business, you’ll need to have an exit strategy formulated within your business goals.
Your business exit plan will affect how you run your business
You have 4 main choices, when it comes to deciding on an end game for your business – you can retire and live off the profits from your business, sell the business, hand it down, or simply close the doors when you’re finished. But how does your decision look, in terms of your business?
Option #1: Retirement
If you’re planning to live off the profits, you’ll need to ensure you’re maintaining healthy profit margins within your business, to afford you the type of income you want to receive.
Option #2: Sell the business
You need to focus on implementing strategic goals now, that include consistent or fast business growth. The aim here is to adhere to your end game goals, whilst also ensuring your business is an attractive and sound financial investment for a buyer.
Option #3: Hand it down
Whether you’re looking to hand it down to your children or someone outside of the family, you need to start thinking about who your successor is going to be. You can then look to integrate them into your business now, to adequately train them before you want to leave.
Option #4: Close
The simplest of the 4 options – and your exit plan will involve the steps needed, to wind up your business.
Your procedures manual will play an important part in your end game
As illustrated by this business end game article on Inc.com, no matter what your future plans are, your end goals will (and should!) affect how you do business. For many of the available options, your procedures manual will be an important resource for your business.
For example, if you’re selling your business, an in depth, up-to-date procedures manual will add value to your business. Looking to hand over the reins when you retire? Your procedures manual will serve as a valuable resource for your successor. And if you’re looking to live off the profits for years to come, then your procedures manual will guarantee your workforce have time honoured and tested workflows to keep your business growing, once you step back.
If you need some help with your procedures manual, check out part one of our 5-part series, here. The series will show you what a procedures manual is, as well as the processes and procedures you need within it, to help showcase what your business does, as well as ensuring it runs smoothly and efficiently.
When you first start your own business, you may not want to be thinking about what will happen, once you’re ready to retire. However, it’s an important step many business owners neglect to consider – and this can lead to problems further down the line.
Knowing what your business end game is isn’t always an easy decision to make or one you necessarily want to think about now. However, you do need to decide as early as you can, so you can ensure you’re on track with your bigger business goals. You can then hold yourself accountable to those goals and implement strategies into your procedures manual, that will ensure your goals and future wishes are followed, at a later date.
To see how we can help you to produce your Procedures Manual take a look and get in touch to talk about what is the best option for you and your business.