What’s Your Exit Strategy? We discussed what do business owners do when its time to leave.

Dave Chambless of Abraxas Business Services explains that what an exit strategy does is provide a series of steps to optimize the value of the business. Dave advises that the first thing that business owners should do is think about their cash model. Its all about the cash in and cash out. When a buyer wants to look at a business, the first thing that is asked for is the financial statements. Dave encourages business owners to optimize their operations, look at their suppliers and get the best deals, and look at their accounts receivable to speed up the collections. To have a successful exit strategy, business owners should be working on the business not in the business so that when it is time for the owner to leave, they have strength in their management team.

We also talked with attorney Justin Daniels who discussed how business owners can get in to trouble when they decide to sell their business if their business is based on the relationships of the owner with the suppliers and customers. No reasonable buyer is going to let the owner just walk away from the business. The most common mistake is not preparing the business to be transitioned over to a buyer. If an entrepreneur wants to have their exit strategy, to get to that next level, the entrepreneur has to step back and be smart about putting the right people in the right places.


After talking about ways to get out of your business, we discussed what to look for when buying a business. Justin and Dave share some basic mistakes that people make when purchasing a business. This podcast is a must-listen!

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