Planning to Exit from Your Business - On Your Own Terms - Part 1

Sep 19, 2014 | By: Michael Blanchard

Getting a clear picture of your goals:

Part 1

Successful business owners are no stranger to planning. Developing a concept for a business, pulling together capital, designing systems and managing employees, taxes, customers - running a business is a never-ending series of plans.

The one plan that often is overlooked is the most important plan for the owner of the business- how to actually leave their business in a way that will allow them to enjoy their life "After Business". They may have a picture in their mind about what it will be like to move on "someday", but haven't considered who might want to buy their business, or how much they can pay for it.

Small business owners typically have a concentration of their wealth tied directly to their business. They often don't have a clear picture of what resources they will need to retire comfortably. More importantly, they haven't put all the pieces in place to receive the value that they deserve.

But, the good news is that it's never too late to start planning. (well, if you have already accepted an offer to sell it would actually be too late). If you are between 1 to 10 years of exiting your business, there are a number of steps you can do. The longer the timeframe, the more you can accomplish.

We can help guide you through a systematic process and provide you with a written plan to exit your business.

With a written plan, you can feel comfortable knowing that you will focus your hard work to achieve your most important goals. Like all plans, it will be subject to change as future events unfold, but you can write your own story. It will answer:

  • What are the steps that you need to create and realize value?
  • Who will be responsible for taking action? We will be working with your current professional advisors, and will help find specialists to assist when needed.
  • When must actions be taken? Everyone involved in the success of the plan will be aware of timelines.
  • How the exit will take place - is it an internal sale? Or will an outside buyer be a better choice?
  • Why - the most important part of the plan is defining success. Do you want the most after tax cash possible? Or is a smooth transition to family members or long-term employees as important as the sales price? Many business owners care deeply about their business, and want to see it thrive after they depart.

More information about the planning process and all the issues that must be considered are available in the white paper that can be downloaded below. If you are interested in taking the next step and setting up an appointment to discuss your exit plan, please contact me for a complimentary meeting.

 Download this more extensive article on exit planning: How to leave your business - on your own terms.

Call to talk with one of our local experts at 503.390.7880.

 

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