What’s an exit strategy?
Having a well prepared business plan is an important step, however ensuring you have an exit plan is more important. Businesses that have been prepared for an owner’s exit are significantly more likely to succeed than unprepared businesses.
If you fail to plan, you are planning to fail
You need to start now, do not wait until that ‘later time’. Running a business is hard and full of unexpected turns and the right time is now. The biggest barrier to the big issues in business is procrastination. It’s all too easy to convince yourself that you’re too busy at the moment, but you’ll start the process next week, month or even year. Get your head out of the sand and smell the roses, it won’t just happen, it won’t be an easy transition, you need to plan to make it a successful exit from all the hard work you put in.
Training
Sometimes the person taking over may need training or a consultant on hand to ensure a successful handover and to assist in maximising your business value; after all you have probably spent year after year building it up. Pushing yourself through long hard days, you deserve a big pay day at the end of your journey.
Making the business affordable & manageable
Passing it on the business to family, even a management team, one major issue can be making your business more affordable. You may need to divest different parts over time, such as separating the business operations from the business assets, premises or equipment. This can be a means of maintaining a steady retirement income. Structural changes can take time so don’t delay, start early, start your exit strategy today!
Goodwill in a Name
Some businesses revolve around the owner and their personality, the business needs to prove it can operate independently if you walked out today.
Improving
Before you move on or look to sell up, you may need to get it ready for sale. Just like selling a house, sometimes the way it’s been done for years, may not suit the potential buyers in the market. It’s important that any changes made, your accountant can add value by helping you prepare the business for maximum sale value. These changes could range from better business systems and an updated customer database, to tighter money management processes and procedures.
Develop a succession team
Starting with your accountant, we have helped other business owners through the business exit process and worked to develop an exit plan. There’s no point in reinventing the wheel on your own, harness the power of your trusted advisor network.
These changes can take time, sometimes several years. That’s why so important to start your exit strategy as soon as possible, contact Business Edge Accountant now!