JOHANNESBURG - Whether you’re running a successful business or you’re an aspiring entrepreneur, it’s essential to create a solid exit strategy early on.
This may sound pessimistic, but here’s the harsh reality: 70percent of all businesses crash and burn within 10 years. Therefore, selling the business before you collapse, or at least mapping out your next move, is a wise and safe plan of action.
A leader must know when it’s time to exit.
I was working in our family business for 20 years. My daughter, Amy, was slated to take over. However, to my surprise, Amy decided to become a teacher instead.
Yes, there are risks to generational succession: it only works 30percent of the time. Sixty percent of the wealth is lost in the next generation and passing the family’s most valuable asset to the next generation is a risky bet.