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What Is Business Exit Planning?

Written by Smart Financial | Apr 19, 2018 5:37:10 PM

In the exciting early days of starting your business, many business owners never truly think about leaving it. You may think that you’ll just cross the bridge when you get there, but the truth is that business exit planning helps put you in control of your business and consequently, your personal life. Being in control is much easier when you write down a clear, carefully thought-out plan.

Having an exit strategy in place will help you build a bright future for you and your business, and give you the freedom to achieve the things you’ve always wanted to.

It’s for this very reason that you should consider business exit planning right from the start.

What is Business Exit Planning?

Quite simply, business exit planning is the development and implementation of a sound plan for the future of your business, that helps you pursue your other ambitions.

It might sound a little premature, particularly in the early years of your business lifecycle, but the decisions you make today have huge implications on the future, both for you and your business.

Why Do I Need to Plan My Exit?

There are lots of good reasons why a business exit plan should form part of your overall business strategy.

Firstly (and most importantly), there are your own ambitions. What do you want to do with the life you’ve worked so hard to achieve? Retire early? Start another business? Spend more time with your family?

Is this something you’ll do for the rest or your life? Are you seeking personal development? Knowing your purpose right from the beginning will help you create a viable exit strategy by helping you determine what you want to do, and when.

A business exit plan helps make your business look great for investors or purchasers, highlighting its key benefits. You’ve worked hard to build your business up, putting in countless hours and resources and making sacrifices – taking the time to develop an exit plan will help add to the value of your business and attract just the right buyer when you need it.

What Are My Options?

We’ve helped lots of people like you make this important plan and there are a couple of key options you might want to consider, all of which can facilitate a graceful exit from your business:

  • Scale the business
    You may have ambitions to grow and develop your business, adapting as times change.
  • Pass it down
    It’s common for business owners to want to pass their business onto trusted partners, perhaps their management team or a family member.
  • Step into a less involved role
    You may want to take some time out, remove yourself from the day-to-day and take a more hands-off approach.
  • Sell externally
    Selling the business to an external party is a common exit and one which requires careful planning and handling.

Start Planning Your Business Exit Strategy Today

Business exit planning should play an important role in the formation of your business’s mission vision, objectives, and targets – even in the people you hire. We understand how much you care about your business, so give it the best chance possible by doing this important thinking as early as possible.

Thinking about your exit in good time will give your business a strong foundation and allow you to concentrate on enjoying what you do, safe in the knowledge the future is taken care of.

If you’re ready to start thinking about your exit today, download our free checklist and take the first step to planning that bright future.