The Exit Strategy

Not having an exit strategy is always a mistake. I think people fail to think about and plan for an exit strategy because they have the mindset that failure isn’t an option. Um, no. Failure is always an option and avoiding it as a thought process may be setting yourself up failure! The good news is people, like myself, can learn from their failures.

Even with the best training and the most experience, you should always plan an exit strategy in business. In fact, you should always plan an exit strategy when entering into any contract or committed situation. Knowing the worst case scenario up front can help you navigate your future endeavors. So, yes- I recommend making an exit strategy for your business. But how?

1. Write your business plan and write your exit strategy back-to-back.

2. Succession Planning vs. Selling to an Outside Party- which one is right for you? Should things go wrong, how will you sell your company? Will you sell your company? What if things go right? Will you sell your company? If so, to who?

3. Don’t assume your family wants to takeover the business in the middle of your crisis. Talk with your family about handling your business should a medical or other life emergency arise. Would they be able to (and would they want to) take over your company?

4. Consult with advisers now about your exit strategy (either selling because it’s failing or selling because it’s succeeding). If you don’t hire the right financial, legal, tax and business advisers to help shepherd any sale or consult on an exit strategy from the get-go, you’re doing yourself a great disservice.

Exit strategies are needed. It’s difficult to address when launching a business, but I promise you its even harder to address when going through a time of great wealth or difficulty.

Until Monday,

Twyla Garrett

Office Rumors.

Rumors are the worst. Most of the time, they are not true. However, sometimes they are. Either way, rumors and office gossip can easily tear a company down. Many great employees either leave because of gossip pertaining to them or because they culture sickens them.

I wanted to address how you deal with office gossip and rumors directly on my blog tonight. First, identify the root of the gossip. Now, you have two choices. First, don’t share anything with this person and change the subject every time he or she is around or second, fire him or her. This may seem drastic but it also depends on the extent of the gossip.

If the person is gossiping about someone’s hair or personal affairs, it is catty but ignoring it usually squashes it. If the person, however, is sharing company secrets or talking bad about the company or key employees in a way that can be harmful, liable or leak trade secrets- there is no rectifying the behavior. A firing is needed. Period.

I tell all of my employees that gossiping is not acceptable. Regardless of who starts it, if it gets back to me- the entire staff is fired. This isn’t a joke. I will do this. Most people are less likely to carry stories or even go near known gossips if they know the entire group’s livelihood is dependent upon this single rule.

So, if need be, implement my no gossip policy tomorrow. It is the best way to save your company from legal issues and prevent employee turnover.

Until tomorrow,

Twyla Garrett

Christmas Sales Down, Is Your Business?

I recently red a feed, via the Miami Herald, that Christmas sales and holiday sales are down when it comes to retail. Has this impacted your business?

I've been out to the mall and I haven't seen any ghost towns. So, it is hard for me to judge if sales are truly down or not. But, as a business owner I can say that this share has been hard. I've made it through, but the money could have been better! I guess we can all say this, right?

Based on this article, I want to know if you, a retailer, have seen a huge declined in sales, so far, compared to the last holiday season. Also, let me know your reasons as to why the sales may be down. Some business owners are blaming Hurrican Sandy and others blame the general economy.

I want to know this as I am writing a book on business failures and want to offer tips on how to muddle through though economic times. Follow me on Twitter and DM your story. Or, just comment below! I would love to hear from you.

In the meantime,
Happy Shopping!

Twyla Garrett