5 things to consider when exiting the small business world
Rarely does a businessperson open shop for the sole purpose of selling the business down the road.
After years of investments, sweat equity and passion, moving on can be one of the most difficult things one can do.
Yet, selling your business might also be just the opportunity you’ve been looking for as you plan the next big move.
Regardless of your intentions, it’s important to think about an exit strategy early in the process so that you are prepared for anything. The following five takeaways can be invaluable to small business owners who might one day face this decision.
Focus on details
Whether you’re selling or acquiring, minding the details can ensure a successful transition.
A new buyer might be hesitant to take on the business if the details and job descriptions, for instance, aren’t properly laid out in fine detail.
When a new partner comes in, you can earn their confidence by laying the groundwork for a smooth transition and successful takeover. And it starts with conveying the details.
Lean on good advice
It’s never too soon to take in good advice from a trusted business consultant.
Handing over what you built over the years is a complex undertaking that requires careful planning and savvy decision-making.
When you have worked with a business advisor from the start of your journey, it’ll be just that much easier to consider the options and move forward with a viable plan that you and the new owner feel strongly confident about.
Remain in close communication with your tax accountant and attorney in the event of gifting, or an asset or interest/stock sale. There are many factors to consider during this transition and strategic planning can save you tax dollars and liability in the long run.
Leave options open
Regardless of what motivates the sale, it’s prudent for business owners to explore their options on the other side of the deal.
Will it be a new acquisition? A new partnership?
By exploring the options, transitioning business leaders will be better able to secure a soft landing and find a new challenge that excites them and positions them to succeed. With some research and careful thought, there’s no stopping what new things you can achieve in the business world.
No doubt, your business is a well-oiled machine of success. Do everything you can to keep it that way through the transition.
Your pride and joy you carry can endure well beyond your tenure. By tying up loose end and keeping the engine humming, you can create a forward path of longevity, success and sustainability.
A new owner will be watchful. So, give them reason for optimism by demonstrating that the business is still in its prime and poses minimal financial risk.
Take part in the succession planning to minimize disruption of operations once the transition is complete.
Your goal is to assist with the mapping out of responsibilities, reassuring the incoming group that it’s possible to hand off and keep strategic management momentum from never slowing down.
Remind them of the business’s strengths, weakness and values. You will take pride in knowing that the business you built will be passed on to the capable hands you helped inform and support.
Contact us should you wish to discuss a strategic business and succession plan. Drafting the road map for “getting in” is as equally important as the roadmap for “getting out.”