Why is it important for every business owner to have a business exit strategy? For one, your business is likely your biggest asset and maximizing its value will help fund your retirement, whether that’s five years or 25 years away. Unfortunately, none of us has a crystal ball. The future is unpredictable, but a solid plan will mitigate the risk from unexpected events like health issues, stock market volatility, or economic downturns. You wouldn’t plan a trip without a destination in mind. Think of your business exit plan as a roadmap that will get you where you want to go. In addition to peace of mind, establishing a clear plan will ensure you’re getting the best possible value for all your hard work.
It’s never too early to start thinking about your retirement. Planning should begin at least five to seven years before you anticipate selling your business. Knowing your end goal will help you run your business more effectively, and stay focused on the big picture without getting lost in the day-to-day minutiae. We know that you and your business are unique, and there’s no such thing as a one-size-fits-all exit plan. A plan should include actionable steps that allow you to control the future of your business by making decisions that align with your vision. With clear objectives and a strategy to reduce risk, an exit plan will enable you to reach your personal and financial goals for retirement, and ensure the long-term success of your business.
Business exit planning is a very specialized field, which is why partnering with an expert to help you navigate the process is the best way to make sure you leave your business on your own terms. An expert will provide valuable insight and guidance on all aspects of planning, including minimizing your tax burden, assessing fair market valuation, analyzing financial reports and cleaning up cash flow, creating a succession plan, and protecting your future financial health for retirement. Your business success is the result of lots of planning and hard work and your exit requires the same thought and care.
