VA Business Exit Plan - Virtual Assistant Forums

My Office Zilla · #1 (**permalink**) 06-04-2008

Recently I was fortunate to spend an entire evening with one of the supportive ladies on my advisory board. She is a small business owner too (see her business here - ill adviced if you are hungry

), which is why I asked her to be on my board. One of the things she asked me about was my exit plan. I was shocked! Exit? I'm still working on the entrance stage, why would I want to plan my exit? She said that when she went through the Kauffman Foundation's offerings for entrepreneurs one of the things they encouraged was developing an exit plan.

So, I was curious and did a little research. Although I found a blog post, Small Business Owners Lack Exit Strategy, which had some interesting info it didn't really answer my questions. Not that I've done any indepth search, I only googled, but there didn't seem to be much info out there and what was there applied to way bigger companies than what I have in mind. The stuff I did find was really old...1999 and earlier. Not that stuff that old isn't good at times, don't get me wrong.

So, now I'm turning to the population of VAF to get a reading on the "norm" for VA businesses.

How would an exit plan look for a VA? Do you have one? If you do, would you be willing to share it with me and the rest of us?

As a side note, you might find some good info in the Kauffman's eVenturing Entrepreneur's Resource Center.

Make it a great day!

StephanieP · #2 (**permalink**) 06-04-2008

You actually have an advisory board? Are these friends of yours that you can go to for advice or is it an organized thing? Just curious.

I would imagine an exit plan would involve things like how to handle your clients and find them new "homes" in the case that you close your business for any reason, disolving your business legally (unregistering, canceling accounts, etc.) and that sort of thing. Am I on the right track here?

My Office Zilla · #3 (**permalink**) 06-04-2008

I think the advisory board is a whole other story all together!

I'll put something up about that!

Dissolution, gifting it to a current employee and sale were the three options she talked about. She is actually in the process of closing her "doors" because her life has simply gone in a different direction. She now is working in the residential mortgage industry. It is a great place for her because she is very caring and works hard to actually HELP people in serious trouble.

This is her...

...and each one of those balls is a career. Besides the business I posted before she does the one I just mentioned plus HR consulting AND basket sales (that American "L" company). To top it all off she and her husband took foster parent classes in order to adopt! In other words her career was her baby previously and now they want a baby!

ANYWAY, now she is actually seeing what a great thing her exit plan is because it kept her from getting too emotionally attached to her company...she already had the exit in mind. Don't get me wrong! Being emotionally unattached DID NOT keep her from being passionate!

So, you are on the right track. You just didn't have both rails and the ties in between them.

StephanieP · #4 (**permalink**) 06-04-2008

Thanks for the information and that's a good point - a way to not get too emotionally attached to your business.

By the way, I absolutely LOVE that (American "L" company)

Tess · #5 (**permalink**) 06-25-2008

What in interesting idea-it does make perfect sense though I doubt any of us actually even considers what we'll do if/when we need to move on to something else...
Great thinking points Sundi - thanks so much for posting this.

tildavirtual · #6 (**permalink**) 06-26-2008

This is an excellent post and something I am thinking of to add to my business plan (also under major construction). I'd like to think that after all my hard work that I have a saleable product. Something other people would be interested in buying.

Cardinal Point · #7 (**permalink**) 06-26-2008

Exit Strategy - is one lesson that I learned working in the venture capital industry for so many years ...... you must develop an exit strategy. It should be a part of both your Business Plan and your financial growth forecast. You never know what will be around the corner - just like being prepared for that first client.

Now, have I developed one ..... no, but it is included as an incomplete page in my business plan.

Thanks Sundi for passing on the Kauffman Foundation resource page!

My Office Zilla · #8 (**permalink**) 06-27-2008

While searching for something else I came across this interesting article just this morning...Exiting The Business: Women Entrepreneurs Learn How to Do It Right.

My favorite point, "Run your business every day as if it is for sale." That definitely made me stop and think for a minute!

Cheryl R · #9 (**permalink**) 06-27-2008

This is an excellent topic! I have heard of this but not in depth. The point I did take away from the class I heard about this in was that you should treat your life And your business like a business. Do not get so emotionally attached (which women particularly do), make decisions based on facts and information - with your head, plan, have strategies...its all very reasonable..and smart. an exit strategy one makes perfect sense.

White Rose · #10 (**permalink**) 06-28-2008

That is very interesting. I never heard of that or realized how important it is. Great thread...I'll take some reading into this.