What exactly is a Business Exit Plan and how do you create one that allows you to leave your business in style. There are an infinite variety of businesses and business owners. Each owner’s exact Exit Plan will vary, yet most all contain common elements. 

The following questions will serve as a framework to develop a Business Exit Plan. Your specific answers to these questions will serve as the basic elements of your unique Exit Plan.

1. What are your primary objectives in leaving your business, such as: Departure date? Income needed to achieve financial security? To whom do you want to leave the business?
2. How much is your business worth?
3. How do you increase the value of your business by enhancing your most valuable business asset - the employees?
4. What is the best way to sell your business to maximize your cash, minimize your tax liability, reduce your risk?
5. How do you transfer your business to family members, co-owners or employees while paying the least in taxes and enjoying maximum financial security?
6. What steps have you taken to insure that the business continues if you don’t?
7. How will you provide for your family’s financial security and continuity if you die or become incapacitated?

 

If you are going build an effective plan to successfully exit your business, you must carefully consider and answer each and every one of these questions. We’ll talk in more detail about each of the steps and how they will enable you to leave your business under the most favorable conditions.  
 

 

 

Tags: business exit plan, business value, business worth, exit your business, leaving your business, sell your business, transfer your business, value of your business