Exit strategies are a crucial part of the small business planning process when selling your business.
Even if you do not intend to sell your business, you need to have good exit strategies up your sleeve to avoid any complications later.
Exit strategies can be your way of planning and managing your eventual departure from your business.
Following are 4 key exit strategy tips for you to consider before selling your business: 1.
Write down your exit strategy plan in detail: It is the foremost exit strategy you need to undertake.
To realize your strategy! It is essential to first properly plan your exit strategy and stick to it.
Having a written plan will enable you to be in control of the process.
You need to have a proper exit strategy plan to keep a track on your business proceedings.
By making a plan and sticking to it, you will notice an immediate, positive impact on your business.
2.
Know the right time to get out of your business: It is a well-known fact that the best businesses to sell are the ones that are not time-dependent.
Therefore, you need to have a sustainable, durable and predictable type of business to attract prospective buyers.
You need to ask yourself certain questions such as 'why exactly do I need to get out of my business?' and 'what do I need to get out of it?'.
3.
Assemble and consult your advisory team: To get the best deal and returns from your business, it will be beneficial for you to take your final call only after consulting your advisory team, who will provide you with all the necessary information.
Your advisory team should include your business lawyer, accountant and business broker.
You can also consult a tax professional and hire a personal financial advisor.
4.
Try increasing your business value: This is perhaps the most important exit strategy.
Your business has to be in good shape to attract the prospective buyers.
Some of the factors that can have a major impact on your business' sale prospects are its profitability, durability, predictability and sustainability.
You need to work on improving these factors before deciding to sell your business.
Not having an exit strategy plan may spell doom for your selling prospects.
Therefore, it is advised that you consider the above-mentioned exit strategy tips before taking the final call.
For more information regarding exit strategy planning, deciding your business value and selling your own business, be fully prepared by using information and tools from highly regarded industry experts who have bought, sold and valued many different types of businesses using the guide and valuation tool in the Bizsale Kit.