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Business Exit Strategy

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Exit Strategy for Xpressionz Hair Salon, Spa, & Boutique, LLC.
I am the owner and operator of Xpressionz Hair Salon, Spa & Boutique and also lead Colorist/Stylist and my Husband is the manager. The Salon has been in business for 10 years, has a loyal clientele, and is very profitable. If we leave, our way of doing business as well as customer service and operational efficiencies go with us. There isn’t much left in the business except the name. However, if the we begin planning for a sale years before, we can make the business much more valuable to a potential buyer. For instance, as a stylist, I can train one or two assistant colorist, and teach them his secret formulas and coloring/styling techniques. My husband, who manages, can hire one or two assistants and train them. We can develop procedure manuals (or at least define what the procedures should be). She can also introduce her protégée’s to regular clients so they know who they are. After a few years, a buyer could easily take over the business and keep it going as long as he is able to keep the now well-trained staff on board. By following the above steps, we have significantly increased the value of their business. Since we have expanding a lot, and larger businesses have much more at stake, the best approach is to postpone the sale for a few years, and gradually put some key elements in place to maximize the value of the company. Basically anything that increases transparency, efficiency, revenue or profitability, or decreases risk or costs, should be considered.
Keys areas to my Exit Strategy: * Build a real management team * Set up and document business processes and systems. * Clean up the company’s books. * Conduct an inventory of all physical assets * Start networking with business buyers, other business owners, business brokers, and others. A good place to start is a

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