A Business Exit Strategy – Why would I need one now, I am not going anywhere? | Succession For Business Group | Succession Planning | Accounting | Small Business | Warrnambool | Melbourne
Every business is bound to change hands sooner or later and if you wish to have it happen on your terms you need a plan to cover all circumstances, even on occasions that may be out of your control. I know, you’re saying, we are only just beginning or I am doing exactly what I want to do, I don’t want to leave.
Did you know you must operate your business so that it is ready for your exit at any time? You cannot predict, what may be around the corner:
* Death
* Divorce
* Illness
* Partnership Breakdown
The last thing you want to happen is to be forced to sell your business in a rush and get a fraction of the price you expect you are going to get for it.
We have found that less than 3% of Australian small to medium businesses do not have any form of have Exit Plan. Yet is one of the most important tools you should have in your business. Many serial entrepreneurs have an Exit Strategy, as this is part of their own business model of creating and selling businesses. We all know the kind, but it isn’t just for them.
Putting a Exit Plan in place regardless of whether you have the desire to sell in the near future or at some other time in the future can significantly help to achieve your optimum sales price. An Exiting Strategy or a Succession Plan is a process that includes an analysis of your business, a valuation of your business, the preparation of your business for sale, setting a realistic time frame and many other considerations.
Indeed you should start planning your exit strategy from day one, it should form part of your business plan and be the underlying force which guides the processes of how you operate your business and getting you to where you want to the business to be.
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