There is a lot of talk about ways to start a business and develop it. But if necessary, we also need to know how to get out of the business. For many reasons, divesting your business can be a turning point in your career path. You have spent a lot of time and resources growing your business and you do not want to leave it to others. But sometimes getting out of business is your most lucrative opportunity in the market. Leasing a successful company will also increase your reputation in the market. Of course, you must have a successful resume. So you should try to make your company successful even after you leave. Here’s how to put one together for use with your business.
Let’s get back to the point. Why leave a lucrative business at all? You may need funding for another project. Maybe you have reached your business goals and you want to start a new business. Maybe your instinct dictates that it’s time to go! Or maybe you are even thinking about retirement.
Whatever your reason, you need to get the most out of your business. A common way to divest a company is through direct succession. In direct succession, you transfer ownership of the company to your family members, business partners or employees. You might as well sell your company to others (even competitors). For companies with high growth potential, an initial public offering (IPO) may also be used.
Proper implementation, just like starting a business, is the key to successfully leaving the business. To be successful (and to continue to be successful), you need to focus on certain things that you will learn about later.
1. Examine the customer retention process
One of the most important concerns of any business is customer retention. Examine your customer retention process carefully before outsourcing. Customer retention is essential for many reasons.
The first reason is that the cost of attracting a new customer is 5 to 25 times higher than the cost of retaining existing customers. Reliable customer base makes budget planning much easier. As a result, potential buyers’ desire to buy a company will definitely increase. Loyal customers also facilitate the attraction of new customers. These brand advocates are the most reputable marketing method for you [یعنی بازاریابی دهان به دهان] Run. Research on this topic shows that 92% of people consider their friends’ advice more credible than any other type of marketing.
Ensure customer retention by promoting a customer-centric culture in the company and equip the process with state-of-the-art technology wherever possible. “McDonald’s” is a good example of this. By establishing a social network management system, the company carefully collects, analyzes and handles any feedback it receives from customers in cyberspace. You can also relate the punishment and reward of your employees to the experience and opinions of customers. All of these efforts ultimately guarantee customer retention before and after you leave the company.
2. Do not forget the financial audit
Before leaving, be sure to check the financial health of your company. Terry Lemmers is a board member of Innovative Business Advisors. “Just as you go to the doctor to check on your health, you should seek the advice of experts to check on your company,” he said.
A reputable financial analyst (CVA) rating provides valuable insights into your company’s overall financial condition. Most homeowners make miscalculations before leaving the company. For this reason, the financial audit phase is essential. Common financial errors include inaccurate reporting of inventory (may have unintended tax consequences), lack of proper accounting system, and under-reporting of cash sales. An understatement about cash sales lowers your taxes, but it also weakens your company’s cash flow. It is unlikely that this situation will be favorable for someone who intends to sell his company!
3. Prepare the company’s management team
A strong management team ensures the successful transfer of the company to new owners. This team also strengthens the confidence of potential buyers in the company. In fact, it is not possible to sell a company without a high discount if your company’s management team is not first class.
Do not postpone delegating your authority to other managers for 90 minutes. Give them enough time to adjust to new responsibilities and discuss their new role with you. Before preparing the team, you must resist your strong temptation to raise the news of the transfer.
Only share transfer news with your senior management first. These managers can work with you to prepare the required documents and interact with the investor bank or commercial intermediaries. Let the sale of the company be finalized and then discuss it with the whole team. If you notify ahead of time, the management team may be confused. This issue will have a negative impact on the company’s performance.
The last word
The transfer of a company will only be easy and successful if it is properly managed. Take a look at these three and make sure you do your best to get the best selling price. In this way, you provide the best growth opportunities for the company after leaving it. Rest assured that your brilliant performance reputation is spreading everywhere.