Prepare for the Unexpected: Develop Your Pawn Business’s Exit Strategy Now

July 6, 2022 by Steve Stallcup

Topics covered: Buyer's vs. Seller's Market, Resources, Selling Tips, Valuations

The simple truth is that if you have a solid exit strategy, you’re going to be much more likely to sell your pawn business for a respectable profit than if you don’t.  If it’s a buyer’s market, don’t wait until it’s a seller’s market to plan.  These two situations are guaranteed to eb and flow.

Whether you need to sell your pawn business due to hard economic times, the loss of a partner, or the need to reorganize your capital structure, selling your pawn business when you don’t have a clear exit strategy can feel a lot less like an opportunity and much more like a shove in a direction you don’t want to go.

Most people think that developing an exit strategy is something you should do once you decide to sell, but it’s actually a much better idea to either include an exit strategy in your business plan at the start of your business, or, if you’ve already been in business for some time, to fold an exit strategy into your existing business plan.

Most reputable exit strategy specialists with experience in the pawn industry can help you add an exit strategy, whether it’s loose and flexible or comprehensive and formal, to your existing business plan at a reasonable cost.  When you’re ready to sell, your exit strategy specialists can then take your strategy, ramp it up, and set it in motion without having to backtrack and do a lot of time-consuming legwork. This helps reduce or eliminate hassles and get your business sold at an accelerated rate.

Obviously, your exit strategy is going to have a lot to do with the value of your business. Your exit strategy specialist can also help with the valuation process, offer financial advice, and help you determine how market changes may impact the value of your business so that you can appropriately adjust your asking price and the timing of your exit.

Implementing the advice of pawn industry experts can also help you fleece your business of certain weaknesses so that you’re in the strongest possible position when you do come face to face with potential buyers. Perhaps customer service has been poor, your bookkeeping processes need updating, merchandise is in disarray, or your reputation in your community needs improvement. Your business may be vulnerable to market changes and a slew of other uncontrollable factors, but by making improvements where you do have control, you can increase the value of your business and make it more attractive to buyers.

No one knows what the future holds. Having an exit strategy in place can help you prepare for the unexpected, increase the value of your business, and, when the time comes, maintain control throughout the sale of your business. Reach out to a Stallcup Group exit strategy specialistsooner rather than later. When it comes to your independent pawn business, it’s never too early to prepare for tomorrow.

Our strategic approach to selling is what makes all the difference.

We know how buyers think and what they are looking for when reviewing a pawn shop package. Find out why Stallcup Group’s exit strategy makes negotiations a fair fight for sellers.

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