On behalf of Kadish & Associates Law Group posted in Closely Held Businesses on Monday, July 27, 2015.
An unsung part of developing a successful business is planning an exit strategy. Indeed, building the business and making the most of it are important aspects, but being able to leave your enterprise on your own terms is the ultimate goal in business success. However, not many people consider their exit strategy; presumably because it is so far into the future, or they are simply in the beginning stages of building the business.
Nevertheless, planning for the future is almost as important as maintaining the present. With that, there are four points that business owners should consider as they ponder the best ways to leave their business.
- Set goals – This may seem obvious, but it is surprising how many people do not set benchmarks for what they will need in order to leave the business. Setting your goals involves knowing how much you will need after leaving, and knowing how much more you will need to maintain your current lifestyle.
- Seek support from other stakeholders – Unless you are running a solo, independent business, it is also prudent to seek support from other people in the business. It is prudent to see if they are ready for the added responsibility of taking on your functions, and if they have the financial wherewithal to do it.
- Know your company’s value – For those who are running an independent enterprise, know what your company is worth is paramount. You may risk compromising your retirement or your next business venture if you sell for less than what the company is worth.
- Execute your plan – When and while you follow up with your plan, it may be worth revisiting and adjusting if need be.