Did you know that many business owners don’t realise that their businesses are valuable? Often business owners simply close down and walk away from their business without cashing-in on the goodwill that they have built up in their business over many years.
What a shame, all those years of hard work; and no reward for their efforts. If they had only known that there was a buyer out there for their business.
Some business owners never plan for the day that they will sell out. Oh! They plan to sell, but they just don’t know how, or when, or who they will sell to, or how much the business should sell for. There is no plan in place, just a vague intention that one day they will sell.
Do you fall into any of these groups? Or do you have an exit plan for how you intend to maximise the reward that you deserve when it is time to move on?
What is an exit strategy?
Having a plan on how and when you will sell your business is an exit strategy. An exit strategy allows you to sell your business on your terms, when it suits you, and when you are ready.
Without an exit strategy in place you will be a passive seller waiting and hoping that a buyer will come along and solve all of your problems. Having a proper exit strategy in place will allow you to cash-in quickly, easily, and scientifically.
Having an exit strategy will enable you to:
- Get the best possible price
- Avoid disruption to daily trading
- Avoid time wasters
- Save money
- Sell quickly
How to create an exit strategy
So how do you create an exit strategy? You can talk to an accountant, business coach, lawyer or business broker. Business brokers work in the market every day, and they know what your unique business will require to be ready to sell for maximum value. They can advise on the 17 areas that you need to consider when selling, and how to implement your plans.
An exit strategy includes:
- A target date
- Listing targeted potential buyers
- Knowing what potential buyers want
- Setting an appropriate asking price
- Preparation of financial accounts and data
- Creation of a marketing plan and tactical execution timetable
- Many business owners never get around to planning how and when they will sell their businesses. They procrastinate, and let other issues take priority.
Business owners with an exit plan in place are proven to be more effective business owners. This is because they have focus and direction. They are not aimless, because they know where the business is headed, and exactly what they must do to achieve their goals. Having direction provides confidence, and confidence enhances performance.
Free e-book: Twelve Tips for Selling Your Business
Download our free e-book called ‘Twelve Tips for Selling Your Business’ at benchmarkbusiness.com.au.