Business Exit/Selling Plan
Business Exit/Selling Plan - One of the largest areas of denial for most business owners is that someday, they may want to retire, transfer ownership to family or employees, sell their enterprise, be forced to step down due to heath reasons or decide to liquidate all or part of a business. Some look upon this is accepting mortality or failure in the business arena.
The key is when it is time to have it react to these factors, who do you want to control the outcome? Increasing numbers of business owners are looking at this sunset time in a business and putting in place an exit plan or succession plan.
Other business owners understand that the business itself is a collection of assets and liabilities and that selling them at the top of the bell curve is similar to selling an investment at the peak value of the asset. They specifically build a business with an exit strategy in mind.
An excellent series of books on this mindset is The E-Myth, by Michael Gerber.
Whether you work with your accounting practice, legal team, an independent business consultant or put things in place for yourself, every business will change form and shape with time.
The key is to often put in place a frame work that anticipates many scenarios, both good and bad; and allows the freedom and flexibility to have the enterprise continue in the best possible course.
Here are examples of privileges you could offer:
For a business of just about any size, one of the most valuable items (aside from its reputation) is its client database. You should keep good records of your clients from your very first day and gather as much information as you can.
You can make it easy on yourself by using a customer relationship software to keep track of clients. Not only is it important to keep all of your clients contact information, it's critical to save other important information such as jobs you have done for them in the past, how much they were charged, when they paid you and more. This complete record is attractive to a potential buyer because it gives them a look into your past relationships with the clients they are soon going to be serving.
Budget: $500 - $1,000 Quarterly