Why You Can't Start a Business Without Knowing When You're Getting Out

By Liam Hobbs, Franchisor, More Than Loft Ladders

Sounds a bit dramatic, right? Starting a business and already thinking about the end? But trust me, knowing your exit strategy from the beginning is crucial, especially when you’re investing in a franchise.

Now, I’m not saying you should be planning your retirement party before you’ve even opened your doors! But having a clear vision of how and when you’ll eventually exit your business can be a game-changer. Here’s why:

1. It Keeps You Focused: Knowing your end goal helps you make strategic decisions along the way. Are you building a business to sell in 5 years? Or are you planning to pass it down to family? Every choice you make, from marketing to expansion, should align with your ultimate exit plan.

2. It Maximises Your Return: A well-planned exit strategy can significantly impact your financial return. Whether you’re aiming for a lucrative sale or a smooth handover, having a strategy in place ensures you extract maximum value from your hard work.

3. It Reduces Stress and Uncertainty: Let’s face it, running a business can be unpredictable. But having an exit strategy provides a sense of security and control. Knowing your options reduces stress and allows you to navigate challenges with a clearer perspective.

4. It Protects Your Legacy: For many franchisees, their business is their legacy. A well-defined exit strategy ensures a smooth transition, whether it’s passing the torch to a new owner or leaving a thriving business for your loved ones.

So, what are some common exit strategies for franchisees?

• Resale: Selling your franchise to a new owner.
• Renewal: Renewing your franchise agreement for another term.
• Retirement: Closing down the business and enjoying your retirement.
• Family Succession: Passing the business on to a family member.

When considering your exit strategy, ask yourself these questions:

• What are my personal and financial goals for this business?
• What’s my ideal timeframe for exiting?
• What are the franchisor’s policies regarding resales and renewals?
• What factors might affect the value of my franchise in the future?

At More Than Loft Ladders, we encourage our franchise partners to think about their exit strategy from day one. We’re here to support you throughout your journey, from launch to eventual exit, ensuring you achieve your business goals and secure a successful future.

Ready to climb the ladder of success with a clear exit strategy in mind? Get in touch with us today!