You may not have heard of a short-term exit before. You may be thinking “You either exit or you don’t, right?” Well we believe there is another option. By growing your business to grow and thrive without your involvement in the day-to-day, you have created a short-term exit that you can benefit from for many years.
What is a short-term exit from your business?
A short-term exit is when your business does not need you for the day-to-day operations of the business. At all. Many business owners are unaware of this strategy as something to pursue. Your business can be seen as a true asset you get a regular paycheck from.
The idea behind a short-term exit is to take advantage of the fact that your business actually grows and becomes more profitable because you have built a winning infrastructure for your business to be self-sustainable.
A short-term exit from your business is not something found in many exit planning books. It is not something an M&A expert or business broker specializes in. The short-term exit is figuring out how to get your business to actually be better without you in control.
Why should I want a short-term exit?
If this short-term exit from your business sounds interesting, and you aren’t sure why you would want to achieve a short-term exit, let me paint the picture for you.
- You will have a true passive income source that can sustain you and your family!
- One reason you want a short-term exit is because you need some time extra off to recharge your batteries. Many business owners work long hours that take away from simple relaxation time. We talk about doing nothing to be more productive. When business owners are stressed, they work more. What would you do with less stress, and more time to enjoy daily relaxation?
You may also be interested in pursuing other business opportunities. By pursuing a shot-term exit from your business, you will have extra time in your day. One way you can fill that time is by pursuing other business opportunities. Hey, if you achieved a short-term exit for one business, why can’t you do it for another business? You can look to purchase a business that is operational and turn it into another short-term exited business even faster.
- You might want to get into real estate investment. Most business owners understand the value of investment, especially when it comes to real estate. One client of ours used the extra time he gained from his short-term business exit to build an AirBnB company that manages several short-term rental properties on the west coast. This is another pursuit he was able to achieve a short-term exit very quickly.
- Maybe you have a passion for traveling. Wouldn’t it be great to travel around the world and not worry about work? Or where your money is going to come from? Think about spending 12 months hopping from country to country seeing all the world has to offer while still collecting a lucrative paycheck. Would that be fun?
- One other reason is being able to spend more time with your family. Especially for younger businesses owners looking to spend as much time with their young children, having a business that produces income for them while they don’t need to work is invaluable. Being able to short-term exit from your business puts stay-at-home parenting at a whole different level. By creating a business that can thrive without you, you can make so many more memories with your children.
- A short-term business exit protects you and your family from unforeseen risks
- Then of course, if you have achieved a short-term exit from your business, your business is inherently valuable to an acquirer. Whenever you decide it is time, you will be able to cash out on your business at the highest multiple your industry has to offer. 80% of a business owners wealth is tied up in their business. Make sure you can cash out on that investment.
- Alternatively, your business will be even more valuable to pass off to your children when the time is right. They will inherit the freedom you have created from nothing!
There are many other reasons to pursue a short-term business exit. Ultimately, it comes down to our most precious resource – time. You get time back to spend it how you want, when you want, on your own terms, without worrying about a paycheck. Now that is freedom!
When Should you start pursuing your short-term exit from your business?
If owning a business that makes money for you while you sleep is interesting to you, then you should start pursuing a short-term exit as soon as possible. Contrary to popular belief, getting to this point in business is no easy feat. This path is full of unique challenges, huge effort, major focus, and lots of time. It can be many years before your business is at a point where it does not need you to grow. The reward of this effort is massive, so if you start this pursuit right now, your future self (and family) will thank you immensely. The day you start working with us is the day you focus on this pursuit.
How Can I Have a Short-Term Exit from my Business?
Learn how to Delegate
Delegating tasks to others is one of the keys to success. It allows you to focus on other aspects of running your business. However, delegating tasks to others isn’t as easy as it sounds. In fact, it takes practice and skill to successfully delegate work.
If you want to learn how to delegate effectively, there are several things you should consider before assigning a task to someone else. First, you must be clear about what needs to get done. Second, you should know who is best suited to complete the task. Third, you should set expectations for the person completing the task. Finally, you should provide feedback after the task has been completed.
Develop Trainable Systems and Processes
If you want your business to run without you, you need to develop systems and processes that will allow you to do so. These systems and processes should be so good that they are easily self-taught. Think of creating an internal online academy for how your business operates.
The best way to create a system or process that allows you to leave your business is to first understand what makes your business tick. What are the core functions of your business? How does each function work? Once you know what those functions are, then you can figure out which ones are most important to your business. You can then focus on developing a training program for those functions. For example, if one of your core functions is customer service, then you might train employees on how to answer phone calls, send emails, and handle social media interactions. One of the most popular ones we work on at Denver Business Coach is the sales process. Ask us how we create a Sales Playbook for you!
There are many software programs out there that can help you achieve this goal. We use Trainual. AskArvo is another one worth looking at. Then you have course creation platforms like Kajabi and Thinkific that can offer a more focused internal training program functionality.
Take a Vacation
A vacation is one of the best ways to understand how your business works when you are not there. It also gives you a chance to reflect on where you are at with your business and what you want to accomplish next. We have a litmus test here at Denver Business Coach that goes like this: when your advisor can see it possible, we will force you to take a 3-month unplugged vacation. When you come back, we will assess what worked, and what didn’t work while you were away. This will give us a clear indication of how far away you are from fully achieving a short-term business exit.
To learn how we work with you in achieving this, schedule a call with us now. Get to work on your short-term exit today!