Have you heard of a business exit strategy?
If your answer is no, it is time to start thinking about it. Not quitting; but, doing something different.
This article is part of Effició’s executive series. In this blog series, we share the resources, tools, advice, and infrastructure changes you need to assess, invest, and shift your business. To begin, let’s think about our businesses from an outside perspective.
For instance, has your customer base changed? Is your target market still interested in the current solution you offer or are they flocking to other types of solutions that you do not offer? Finally, are you still stuck in the pitfall of “how do I strive and thrive?”
However you choose to look at it, sometimes it is just time to quit. Quit what you are doing the way you are currently doing it or simply take a short hiatus and go back to the drawing board.
Here are three ways to determine what level of “quit” you should be looking at:
1. Sales over the last three years.
If your sales have dropped by 15 percent or more over the last three years combined then something needs to change. You need to rethink your marketing, upgrade your prospecting processes or, maybe it is customer service that is at a level less than what your customers expect.
2. Trends in the market.
Are your solutions and your business model keeping up with trends in your industry and within your target market? Do you need an upgrade in technology? Are you growing your business with the right resources? Are you able to keep up with your competition or are you constantly trying to catch up? Trends are not always trendy, sometimes they are opportunities that can make or break your business.
3. Customer tastes and preferences are constantly changing.
Have you analyzed the target market you serve in the last 30 days? Not just administering surveys, but analyzing what and how they are buying now vs. five years ago? I know, it sounds like a heavy load, but if you are in business it should be part of your monthly reporting. An easy way to start this process is to look at your buying habits – how have they changed and why?
An exit strategy is not always about letting it go; it can be a small change in how you conduct business to respond to changes in the marketplace or as big as reworking your entire business model.
© Effició, Inc.