By Peter Lyle DeHaan, PhD
Future considerations for owners may include growth, acquisition, or new technology. However, when you think about the future, you should also plan your exit strategy. There are four options to consider when it’s time to scale back or retire.
Sell to Employees or Family: Look to those around you, to your staff and your family, for people who could take over your answering service and buy it from you. And if you sell to a family member, make sure they understand the industry and know how to run the business. Identify these potential people, and then groom them to take over.
Sell to Another Company: Aside from employees and family, you can also look to sell to another answering service or to an investor outside the industry. Going this route may produce the highest selling price, but it might be at the sacrifice of your legacy, staff, or clients. Balance the pros and cons.
Work Until the End: By intention, or sometimes not, business owners continue in their role until the day they die. This eliminates the need for an exit strategy, but it passes the burden on to their heirs. Do them a favor and leave them with a plan.
Shut Down the Business: Some answering services, especially small ones, assume the business has no value, so they close their doors. There’s no reason to do that. Though you may not have a big enough operation to attract high-dollar buyers, your accounts do have value and other services are anxious to buy them.
This discussion focuses on answering service owners, but what if you’re a manager? Then consider these four scenarios, and envision how you can be part of the business owner’s exit strategy. This may involve a direct discussion, or it may require a subtler approach. Either way the potential exists for you to end up as an answering service owner. And then you can form your own exit strategy.
The key is to make a plan, and then work the plan.
Peter Lyle DeHaan, PhD, is the publisher and editor-in-chief of TAS Trader. He’s a passionate wordsmith whose goal is to change the world one word at a time.