Even if you do not plan to let go of your business anytime soon, Sam Goldenberg & Associates can help you formulate a Business Exit Plan to safeguard you against unforeseen contingencies. A Business Exit Strategy helps remove the guesswork, provides peace of mind, and helps protect your assets.
What Is a Business Exit Plan?
As the name implies, a Business Exit Plan is a strategy for smoothly transitioning to new ownership to help maximize proceeds or meet other personal goals. While it could mean selling your business to a qualified buyer, this is only one of several scenarios. You may have a protégé, partners or children who wish to take-over the business upon your departure. Sam Goldenberg & Associates can help you identify these options and put a plan in place to make them a reality.
Whether you sell or transfer ownership, an exit plan minimizes disruptions on your business and helps lessen your tax burden. Think of business exit planning as an insurance policy to establish an advantageous market position.
When Should You Create an Exit Plan?
Some recommend you begin think about your exit plan the day you open your business. While this might be prudent, it’s not always feasible or practical. Rather, assess what liabilities or obligations you can reasonably anticipate in the next five-year horizon. Some simple question to ask yourself are:
- Do you have aging parents or loved ones who live elsewhere and who may require your assistance?
- Do you have children whose needs may require you to move?
- Are you hoping to retire or change fields in the next five years?
- Are you simply not enjoying running your business as much as you once did?
- Are your material cost, utilities or other overhead, all expenses which you cannot control, increasing and are they starting to erode your cash flow?
- Do you simply feel burnt out?
Why is an Exit Plan Useful?
Running your business as if it were on the market can help you recognize opportunities to boost value, gain market share or identify new product lines that will make you attractive to competitors, investors and other potential business buyers. Business plans, consistent accounting records, management procedural guidelines, and creating a brand that is not entirely dependent on you (be dispensable!) not only can help the new owners, but can benefit you in the present by putting your business on a solid foundation.
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If you would like to learn more about creating a Business Exit Plan, remember that Sam Goldenberg & Associates asks no fee for the first consultation. We can help you explore options, provide guidance and discuss a Business Valuation that will establish what your business is currently worth on today’s market. Getting the right advice can help you enjoy the fruits of your efforts now and in the future.