When you started your business, you probably thought you’d never leave it. Maybe you still don’t. But even if you’re perfectly comfortable where you are, business exit planning should be a serious consideration for you.
Having a business exit strategy puts you in control, so that you can plan your exit just as carefully as you planned your business at the start.
With a business exit strategy, you’ll be able to achieve everything you’ve always wanted. At Smart Financial, we believe that your years of hard work should establish your future financial freedom. A business exit strategy can be the perfect vehicle for that.
Why Should You Create a Business Exit Strategy?
A business exit strategy is really just part of your overall business strategy. It’s the last phase of your business plan, and lays out your exit when the time comes.
There are a number of great reasons why you should create one:
An exit strategy creates a roadmap so that you can see where you’re going ahead of time. It lets you see any potential problems before they occur, so that you can address them before they materialise. In addition, having a basic plan in place before your exit means that you’ll simply have to implement it when the time comes – no scrambling to figure out what you have to do next.
- Gain Freedom from Your Business
A business exit strategy can include the option for you to slowly phase out your participation in day-to-day operations. You can enjoy freedom from your business even before you leave – easier for you, and easier for your colleagues, too.
- Achieve a Successful Exit
When you plan ahead, you can make your exit as smooth as possible, and the transition over to new management easy, too.
- Build Value
A business exit strategy lets you plan, establish and achieve your financial goals ahead of time, so that they will help you achieve the lifestyle you want after you leave your business.
- Prepare Your Business for Sale
A business exit plan can make your business look very attractive to potential investors or buyers because you’ll have clearly established what its benefits are. You deserve to reap the rewards of your success not just while you have your business, but in its final sale price.
- Prepare for the Unexpected
It’s a given that sometimes, the unexpected will happen. A good business exit strategy will put plans in place so that you have the flexibility to be ready for the unexpected, whatever that may be.
- Build a Sellable Business
If you go into your business with the knowledge that you’ll be leaving it at some point, you’ll always keep its sellability in mind. Not doing so can leave you at loose ends if at some point should you want to sell.
What Are Your Options for a Business Exit Strategy?
There a number of options when exiting a business. The most common are:
- Selling your business to an interested third party.
- Handing over the reins to somebody you already work with.
- Maintaining ties to the business, in that you will have a continuing but reduced role in its operations.
Answer these questions well ahead of your exit; this will also give you time to effectively prepare your business for sale if applicable.
Ready to Plan Your Exit?
An exit strategy should be a vital part of your overall business strategy; you should make it a priority as soon as you begin your business, not just when you’re thinking about retirement.
Doing so can carry you into the future without worry, secure in the knowledge that you have the financial freedom to do what you want once you exit your business.
If you’re ready to start planning your exit, download our free checklist and start today.