In this edition of Wash Wisdom, learn how you can leave your business. A well thought out exit strategy can help you in several ways. Make sure to develop the right exit strategy for your needs and goals for selling your business.
5 exit strategy paths for your business
When it’s time to get out, knowledge is power.
Getting ready to exit your current carwash business and move on to your next opportunity? Turning your attention from profits, growing the customer base and delivering excellent carwash results to developing an exit strategy can be a difficult task for many carwash owners and operators.
In a recent article on is4profit.com, author Jay Dias covers five easy ways to exit a small business. Here are those tips:
- Transferring ownership to a family member: While this will keep the business in the family and offers flexibility in scheduling of the sale, it does not come without hurdles. “Before passing over your responsibilities, determine whether or not your chosen family member is the right person to take over the business. They should share, or have similar, core competencies to your own,” writes Dias.
- Sell the business to a colleague: According to the article, a seller who is interested in passing on the business to a co-worker or colleague might be able to offer buying into the business over the course of time as his or her exit strategy. Many owners select this exit strategy option since they are most likely familiar with the buyer’s business sense and strategies and the buyer might also be very familiar with the business and its customers.
- Third-party sale: As noted in Dias’ article, if you are an owner that is looking to obtain a large amount of capital from your exit strategy, then this could be the right path for you. The downfall is that you cannot be guaranteed that your business’ values, goals and level of customer service will be passed on. Businesses with longstanding ties to the community and its customer base, such as many carwashes, might be less interested in this exit strategy path.
- Partnership/merger: If timing of the sale is not a critical factor for you, then partnering with a business might be best exit strategy. “This exit strategy will allow you to slowly ease your way out of your company’s day-to-day operations that you may no longer want to be responsible for,” writes Dias.
- Search funds: Entrepreneurs are out there and may be interested in buying your business for the right price. By going the search fund route to exit your business, it will afford you a shorter exit strategy.
Read more on how to exit your small business here.
6 ways to ensure employee retention
In business, if you don’t know the problems, you can’t find solutions. Employee retention in the carwash business can be tricky at some locations. If your carwash is experiencing high turnover rates, you might want to start researching the cause. After all, the best employees that leave your business may become your competition’s best employees in time.
In a recently posted article by Entrepreneur, contributor Jacqueline Whitmore provides six common reasons why high performing employees leave their jobs.
- Undervalued and disrespected: Reassure employees that they are doing a good job and always treat them with respect. While money is important, being appreciated and valued is high on employees’ lists too.
- Upward mobility: Employees want to be rewarded for a job well done. In addition to annual, incremental raises, promotions and new titles are also key ways to retain employees.
- Recognize and reward: From simple “thank yous” to bonuses and public recognition, employees appreciate the attention that is drawn to their hard work.
- Be open to input: Your employees know your business and its customers. Therefore, they will have ideas and ways to better serve the customers and advance the business.
- Empower employees: Give high performers the trust and space to independently work on projects. Don’t micromanage quality employees who can meet goals and expectations on their own.
- Poor morale: If your business is a bad place to work, high performing employees will quickly look elsewhere. Bad work environments can negatively impact a business in many ways.
Read more on why your best employees might quit here.