How Are You Gonna Finish?
If you’re in business, or thinking of starting one, one of the most important questions is this – “How are you going to finish?”
Or in business-speak…
“What’s your exit strategy?”
What’s the plan? This vision? The long term goal?
Starting at the end helps you clarify certain things about how you will operate your business and whether or not it can be scaled, whether or not you will need staff and what compromises or milestones you need to be aware of.
Do you want to create a business you can sell at a later date, maybe as a pension plan?
Is a franchise or license business model in your vision?
Are you set on simply working for yourself and when you retire, that’s it?
If the desire for your business is to pay yourself a handsome wage and nothing more, the decisions you will make are far different from someone who wants to turnover a million pounds or more.
I’m not a fan of maths, I trust my gut for much of my business decisions, but numbers can help us touch down to reality.
Here’s what I mean…
£1,000,000 in a year means you have to make
£83,333 in a month
£19,230 in a week
(Provided you never take a holiday)
If you work 40 hours per week, each hour you need to generate £480.77.
I’m not saying it can’t be done, or isn’t done. Just pointing out the facts.
So if you’re in a business charging by the hour and you are the only person working in your business, you need to be charging a very large hourly rate.
And don’t forget the hours you work ON your business…
Take some time now to figure how you want your business to be at the end, and this will help you work out what you need to be doing to achieve that.
It might even help you see you’re business won’t deliver your end goal. And that’s a great thing because you make the changes NOW.
For me, the perfect type of business is one where I can focus on the creative stuff and getting the work in, and employ others to deliver the work.
To grow a business and then sell it.
In the past, I wish I had understood this. But at least I know it now, and can make decisions based on this.
So how will you finish?