I have been involved in helping a number of SME’s create effective exit and succession strategies over the last few years. The success of those strategies has been based on insuring that the owner is controlling their exit through sound planning rather than being forced to exit through circumstances.
An exit strategy is a plan for how a business owner will eventually leave their business, whether it’s through a sale, merger, or passing it down to a family member or employee. It’s important for small business owners to develop an exit strategy for several reasons:
- Preparing for the future: Business owners should plan for unexpected events such as retirement, illness, or death.
- Maximizing value: Having an exit strategy in place can help a business owner maximize the value of their business when they decide to sell.
- Managing risk: An exit strategy can help manage the risk of not being able to sell the business or having to sell at a lower price than desired.
- Maintaining continuity: An exit strategy can help ensure that the business will continue to operate smoothly after the owner leaves.
- Having a succession plan: Having an exit strategy helps to have a succession plan in place, to ensure that the business will continue to be successful after the owner leaves.
- Legal and Tax considerations: An exit strategy can help business owners to consider the legal and tax implications of different options.
- Personal and financial goals: An exit strategy can help business owners align their personal and financial goals with the goals of their business.
Developing an exit strategy is not only important for the business owner but also for the employees, the customers and the suppliers of the business. It ensures that the business will continue to operate after the owner leaves and that the interests of all stakeholders are protected.
If you are a business owner over 50 have you got an exit or succession strategy in place? If not, maybe it’s time now to put some thought into your future.
I will help you ‘Navigate ’ your way through this process – it effectively guides business owners through the exit process.