How to plan your business exit strategy
by Smart Financial
If you’ve ever longed to gain freedom from your business you are not alone – this is one of the most common aspirations for business owners. The great news is however, that you can begin planning today to get your freedom back.
Common Constraints
Business owners can feel trapped because:
• They know more than anyone else in the company about the industry
• The customers ask to deal with them personally
• They are involved in the building or creating of what is sold
• They are the company’s best sales person
Ultimately selling your business is likely to be the desired option, but even if you’re not ready to sell now you should plan ahead. It’s never too early to think about business exit planning.
Why You Should Start Now
Working towards building a sellable business will give you a range of options for your future involvement. Gain control of your situation and give yourself the freedom to choose when and how you scale the business, pass it down, take a step back or ultimately, sell.
Research has indicated a company’s ‘sellability’ is driven by eight key factors: financial performance; growth potential; independence from reliance on one customer, supplier, employee; the valuation ‘see-saw’; recurring revenue; differentiation; customer satisfaction and reliance on the business owner.
The ultimate freedom comes from owning a sellable business that it is not dependent on you – the more you understand these factors, the stronger your position and the more valuable your business.
Take Your First Step to Freedom Today
Take the first steps necessary today to prepare your business exit strategy.
Join Dr Mark Todman, Director at Smart Financial, for our free webinar on Tuesday 8th April at 12.30pm. To find out more and register to attend click here