When it comes to exit planning or succession planning, most business owners are late to address the subject until it is too late. In order to maximize value, entrepreneurs and owners should solicit the help of trusted advisors. In order to increase valuation, businesses, most and foremost, require the assistance of a seasoned operational trusted advisor (experienced CEO or COO) to help put the right processes in place, increase efficiencies and increase profit. Such CEO/COO trusted advisors should work on setting up the business in manner that is less dependent on few individuals that have been there since the beginning. JJ Richa joined us to discuss. Here are three takeaways from our time with JJ Richa on Critical Mass Radio Show:
1. It’s hard to do something well that you don’t do frequently. And while most of us
only do it once, exiting a business/exit planning is no exception, which is why it is crucial to plan ahead and learn from the pitfalls of others, along with the insights of trusted advisors. It takes time to increase valuation, so don’t wait until you are ready to exit to start thinking about it; like any other aspect of your business, exiting should be strategic.
2. It’s good to pivot! While on Critical Mass Radio Show, JJ Richa explained that often in business, an idea starts one way, but takes a few turns before hitting the market. While it may feel problematic that you are straying from your original vision, this is not usually the case. In order to thrive, you need to adjust your vision to something that works and fits the needs of the market. Pivoting often means you are listening.
3. A company will only grow as large as the leader is capable of leading it to. It takes different sets of skills to grow businesses to different levels. It is very rare for an individual to be able to take a company from zero to billions of dollars; only a handful have the skills to accomplish this. Don’t do it alone! Rather than push yourself towards an impossible task, augment so you can get through the different plateaus you may face over time as you transition through different brackets.
Listen to our full interview with JJ Richa here: