It’s Business, And It’s Personal

Having a growth plan is part of an exit strategy

On Behalf of | Jul 25, 2016 | Business Formation & Planning |

Most business owners in North Carolina are looking for ways to increase revenue and add value to their business. A major part in doing so is making sure that it has transferable value, or value that remains even after the company’s original owner has left. When a business has a lot of transferable value, its owners can be more confident that they will have the option of retiring or at least selling it for a nice profit.

Many business owners have not grown their company’s transferable value to where they would like it to be. For them, developing and executing a growth strategy is essential for ensuring their long-term financial health. A growth plan can be written in conjunction with an exit plan, as a business owner may decide to sell the company once the growth goals have been reached.

Part of a business owner’s growth plan may be delegating responsibilities to other people and creating a new management structure. Many business owners try to do everything themselves and eventually reach their full capacity. By assigning responsibilities to managers and allowing them to work towards specific growth objectives, a business owner can set up the right conditions for growth.

A business owner may want to create a growth plan from the very beginning. While an individual or group is establishing a business, an attorney can be of assistance in a variety of ways. The threshold issue is the type of legal entity that the business will operate under, and an attorney can point out the characteristics of the various choices.