Planning your exit

Thinking about options for an exit from your idea, farm or business is a necessary part of the preparation and development.   Exiting might mean giving yourself the freedom to amend your plans early in the process, ending the venture after you have started or passing on a successful operation to new owners or the next generation.  Planning for an orderly exit is critical for you to maintain control and gives you the best opportunity to try again.

As you are planning:

• Let the numbers guide you. 
• Is it an opportunity? But more importantly, is it an opportunity for you? 
• If it is viable, will it fulfill your goals?
• Always keep in mind your alternatives – other work, investment and farming options
• Don’t be afraid to walk away.  The costs of stopping a bad idea sooner rather than later will likely be less.  

If you are already in business:

• Regularly evaluate your farm’s performance and compare it to your goals and priorities.  Are they being achieved? 
• If your operation has investors or creditors what are their expectations and conditions?  Will they impact your ability to control your options?
• Things might be going well today, but always try to look into the future.   Are there storm clouds, new competitors or strategic risks on the horizon?
• Things might be going poorly today, but can changes be made and will those changes have a dramatic impact?
• Utilize ratios, profit & loss statements, benchmarks versus similar operations and other financial performance indicators to understand where you have been, where you are and where you are going.
• Know your limits.  In the beginning set limits for how much money you are willing/able to lose and how much time to invest.  

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