Tuesday, 2 April 2013

I Lost My Exit Plan

Business Owners should be planning for their own future but they are so busy running their companies every day, they never seem to have time to plan for exiting the business

But they can’t avoid planning for this critical time in their lives. 

Presenting a business for sale is very different than managing it with the business owner’s personal management style and priorities. 

Why is planning so important?  It illustrates who you are and where you want to be, it will help you prioritize, it guides you along the way, and it keeps you focused.  Most importantly, it can help protect and perhaps build value in your business.

In the early stages of your plan you should document your goals.  More than just daydreaming about the day of retirement, actually write down what your income needs will be.  Start to quantify what you need from the sale of your business and establish your optimal age to execute your plan. 

Know Your Finish Line!

Your goals should include more than just numbers.  What are your personal goals?  Is the business’ legacy important to you?  What about your kids, how would they be impacted by your transition?  Decide what is optimal and work from there.

It can take years to properly prepare a business for sale to get the highest price.  Business Owners should start creating an exit strategy at the earliest possible opportunity!

Do you have small business questions you would like answered about this article or others?  Please visit www.VRWindsor.com or call 519-903-7807. 
William Sivell is a Broker at VR Windsor Inc., Business Brokerage; his blog appears every Tuesday.


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