Exit Insights
Show notes
Have you considered your business exit strategy? Many entrepreneurs pour their passion into launching and growing their startups without planning for the eventual exit. As serial entrepreneur Kieron James shares, incorporating exit planning from day one sets up your business for success when the right time comes to sell.
As James reflects, "I think you start thinking about exit literally the moment you either incorporate your business or create your partnership, if that's what your plan is from day one."
When his telecommunications company was acquired after just a few years in business, the experience taught him the importance of having documents "standardised, digitised and organised." By scanning paper records and imposing consistency in digital file names and folders, the due diligence process was simplified.
Another key lesson was the risk of relying too heavily on just a few big customers. When one or two clients drive a large percentage of revenue, it can negatively impact valuation. James advises maintaining a diverse client base to mitigate this issue.
Fundamentally, he emphasises building scalable systems and processes that require minimal customer touchpoints. The goal is to construct an easy-to-find, easy-to-onboard business model focused on delightful user experiences. With the machinery smoothly running, entrepreneurs can demonstrate stable growth trends to prospective buyers.
Finally, James urges business owners to clarify what they want personally from an exit deal upfront. Understanding your goals for retirement, family needs, or the next venture informs the deal terms you can happily accept. With early planning and a scalable model, entrepreneurs can set their businesses up for a lucrative exit when they decide the time is right to pursue new passions.
The opportunity to sell a business can emerge suddenly. It pays to build your exit strategy into the DNA of your company so you can capitalise on the right offer when it comes along.
