Having an exit strategy for your restaurant is important whether you have a successful business or not.
Anything can happen and you have to get out. Put an exit plan in place before it is needed.
Be proactive, not reactive. Don't be led by emotions when the time comes.
Last week, we saw a restaurant for sale. The owner couldn't make enough money to cover the basic expenses - bills, mortgage, utilities, etc.
Desperate to get out of debt and sell the place, she dropped the price from $50K to $30K.
Her downfall ... no plan for success and no exit strategy in place. Here are a few thoughts to keep in mind when creating an exit strategy for your business:
* How are we going to maximize what we can charge for it? What would be of value to the potential buyer?
The most valuable thing you have to offer is your database of customers. They are the livelihood of your business.
Keep it a warm market!
It is beneficial to the buyer and allows you to ask more for the business.
* The best defense is a good offense!
Training, good management and checklists are a must.
Our applicants go through several interviews to make sure they are a good fit for our business. When hired, they must go through extensive training to ensure they can successfully handle the position assigned to them.
Training is always ongoing; learning is constant.
Daily checklists are used to guide the employees to make sure they are properly handling the tasks assigned to them.
We have spend hundreds of hours creating this and putting it all into place, ensuring a successful business.
* Have your finances in order!
We can't say enough about this. Use a reliable company to handle your payroll, so that the proper taxes are being taken out and Uncle Sam has his share.
Keep a proper filing system for bills and be sure they are always paid in a timely manner.
Record everything paid and received. Expenses must be covered before considering improvements.
* Work diligently to have procedures in place
So you can hand the business over to your management team and step away.
Train them to handle all kinds of situations without relying on you all the time. Create video training sessions to be reviewed as needed.
The business should be able to run successfully without your presence, allowing you to handle other pressing matters...social media, marketing, etc.
Having a good foundation makes for a stronger building!
* Understand that you are in control of your selling price.
Your gross sales determine your asking price.
The better the sales, the more money you can ask from the buyer. Again, be proactive, plan what you want your business to be worth and set short and long term goals to reach this.
Always strive to improve and never be satisfied with what you have.