
What’s your exit strategy? If you don’t
have one you might think about these helpful tips to keep in mind for a
graceful exit from your business.
Pick
the Right Time
As you set out in your business, you should
have goals. Your business benchmarks could be a certain amount of profit you
get to put into your pocket or building some type of legacy that you want to
pass onto your children. What’s important is that you sell your business at the
right time not when you are forced to sell because of an illness. In other
words, selling a business should be a major part of your business planning. It
should be included as a component of your retirement plans and you don’t want
to wait too long to enjoy your retirement.
Decide
Exactly What You’re Selling
There are many moving parts to a business.
These would be all the various assets that you own and control. Do you want to
sell your business outright? This would mean transferring everything to a new
owner.
If you can’t find an owner who wants to
take over the entire business, you might be able to sell of the various pieces
such as equipment, mailing lists or even a storefront. If you’ve built up a
valuable brand or product that could be sold to a larger company.
Figure
Out Your Business Value
This might seem like a no brainer but it
could also be a bit of a reality check for you. You might think after all the
hard work you’ve poured into your business that its value is enormously high.
In truth, it might be valued at far less than you anticipated. This is why you
can’t depend solely on selling your business when it comes to planning ahead
for your financial security.
The moment you open your doors you should
start saving in a retirement account. A professional valuator will be a big
assistance in this matter.
Avoid
Surprises
Getting your business ready to sell means
you’ll be opening yourself up for inspection. As part of your normal business
practices you should have been maintaining flawless accounting books so that
won’t be a problem, right?
But if you have other assets like an office
or equipment you’ll want to make sure they are all up to the code and functioning
properly before asking someone to buy them.
Get
Professional Help
You shouldn’t enter into the process of selling
a business on your own, you should create a team to help you. Look for the
assistance of corporate lawyers, accountant and bankers. In some cases, real
estate agents can also be helpful. This is especially true if real estate is
involved.
As important is it is to plan a startup, it
is equally important to plan an exit.
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