Most small businesses will want to have some sort of exit strategy in mind. This is something that most investors are interested in before they will invest in a company. If you have an exit strategy in place, you will have better control over your business going forward. You will also be able to maximize your profitability.
If you have owned a business for quite some time, chances are you spent a whole lot of time building your reputation. You probably have a lot of customers that are loyal to you, and you will also probably have a lot of revenue. You might be interested in selling that business one day and enjoying life. If you plan ahead for this, it can help the process to transition much more smoothly.
Here are a few things that you want to keep in mind when developing your exit strategy
- Valuation of your business
- Risk factors involved
- Marketing your business to potential buyers
- Transitioning the control of your business
The best way to start planning for succession of your business is by talking to a professional. You can meet with a business attorney, accountant, or broker to get information to help you with your exit strategy. They can also help you along the way when it comes time to hand your business over to the new owners.
Business valuation is a very important aspect when developing your business exit strategy. You will want to make sure that you are aware of the worth of your business. This helps you to determine a price that is reasonable, yet fair for both sides. Included in this valuation is your intellectual property, patents, trade-marks, and other branding. This can either stay with the company, or you can choose to keep it. Physical assets should be considered as well.
Here are other things to consider
- What marketing strategies will you use?
- What will you do to ensure that your client base is prepared for the transition?
- Will you train the new owners?
If you think ahead, you will likely be able to close the sale without any issues. It can also help to reduce the stress on you during the transitioning period.