Strategic Plan Considerations for Entrepreneurial Organizations
In the final phase of the strategic planning process, you will look at your own personal vision, determine the value of your company, and figure out how to plan for your company’s survival after you leave.
Although publicly-traded companies get all the media limelight, roughly 90 percent of the businesses in the United States are privately held. As a business owner, you have some special considerations in your planning efforts:
What’s your endgame?
How do you establish the value or projected value of your business?
How will your business continue when you exit?
Although you may not want to think about some of these questions today, each one influences the strategic direction of your company. Many owners have a difficult time thinking about life after their company. However, your endgame is arguably the most important part of your strategic planning effort. And although you may not share your ideas with your staff, you want to have a clear plan for your departure.
Take a few minutes to consider the legacy you want your business to leave. Will it continue indefinitely or pass to your children or employees? Do you plan on cashing out or will your business just cease to exist?
Many entrepreneurs can’t clearly see what their businesses look like without them, so they leave their exit strategy to chance rather than intention. But here’s the bottom line: The ownership of your business will be transferred at some point, with or without you. Your death or other unforeseen life changes may force the transfer, but through careful planning, you can leave a legacy of how you want your business to run.