Starting your business was a pivotal decision in your career: exiting your business will similarly be one of the most monumental events. You’ve run your business for years to achieve financial security and leave a lasting legacy – creating an exit plan protects your proceeds and assets so you can enter the next season of your life with confidence or leave behind security for your family.
Your Business Exit and the Next Season
Your exit will leave a lasting impact on your future and the future of your business – you will want to make sure you avoid making mistakes that may:
- Lessen your proceeds from selling the business.
- Not accounting for all of your assets.
- Cause you to lose key employees and customers.
- Jeopardize relationships with partners and vendors.
- Increase the cost of exiting your business.
You Need More Than a Will for Security
It’s not uncommon for business owners to think a will is enough to provide security for their families. However, it doesn’t guarantee the appropriate distribution of your assets – meaning your family or other beneficiaries will have to appear in probate court to determine what they will receive. The probate process is complex, public, and costly. You must set up your estate for proper security and distribution.
Develop a Financial Strategy to Start Saving for the Exit
Even if you aren’t retiring anytime soon, creating a financial strategy to fund your business exit will save you additional work and stress later. If you decide to exit when your business is experiencing stagnation or a decline, your business exit will take longer and cost you more money.
I help my clients create financial goals using an assessment to project growth in 5-10 years: this gives my clients clarity in strategizing to raise their bottom line in their mid and long-term goals – allowing business owners to manage operations as usual instead of rushing when you’re already beginning the exiting process.
Step Back and Delegate to Your Leaders
You will need time to assess your business, calculate your numbers, and plan for the next season. If you’re putting in more hours than everyone else, you won’t have time to assess and gather information – and you’re doing more harm than good for the future of your business. Your best potential buyers want companies that can run themselves: this requires delegating to your teams effectively and developing your company’s leaders.
Create a Voluntary and Involuntary Exit Plan
The same logic applies inside and outside your career: you should plan for the expected and the unexpected. You will want two viable exit plans to secure your business, financial return, estate, and legacy when experiencing a sudden business decline or you are physically unable to continue running your business.
Ready to secure your legacy and earn the maximum financial return? You can book a consultation with me today.
