Exit strategy: every entrepreneur must have an

Website design By BotEap.comOkay, so you are a business owner, or maybe you are just dreaming about your property. Possibly, you are one of the lucky few and you managed to grow your business. Or, possibly, you’re just daydreaming about it. Millions of important business matters occupy your mind. How to increase sales? How to manage expenses? How to make your marketing more effective? etc etc etc However, in most cases, most business owners forget one thing: the business exit strategy. Daily operational challenges keep you from thinking strategically.
 
“What!? Why should I plan my business strategy now? I don’t plan to sell the business for 5 to 10 years. When the time comes, I’ll figure it out…”
 
Your business is probably your most valuable asset. Shouldn’t you be rewarded in the end for the countless hours and sleepless nights you put into growing your business?…
  
Regardless of how you started the business, at some point you have to quit!
There are many ways to “go out” of the business:

• pass it on to your heirs,
• sell your share to a partner or employee,
• find an external buyer,
• just close the door and leave.

Website design By BotEap.comThe last option is definitely the least desirable, but, of course, the most common. In most cases, business owners neglect to plan their exit strategy assuming that at some point the solution will come. However, nothing happens by itself. At some point, business owners may lose interest in the business, get sick, get old, be unable to run it any longer. It doesn’t happen overnight. Sometimes it takes years. Depending on your subjective circumstances, the business starts slowly or declines rapidly. You may think that the situation is not so bad and that you can fix it just by applying a little effort… Wishful thinking! Unfortunately, it never happens! The business will continue to decline to the point where it is worthless and the only option you have is to close the door and leave.

Website design By BotEap.comQuite often, business owners assume that their children will take over the business. In most cases the assumption is incorrect. The children have their own life and their own plans, and they don’t want to take over the family operation.

Website design By BotEap.comSelling to a partner or employee is a very good idea, especially if you have to keep a note for part of the purchase price, mainly because you know full well that your successor is an experienced trader and will most likely succeed. However, in most cases, these transactions are not as financially rewarding as selling to a third party; you can lose around 20% of the purchase price. If you decide to go this route, start training your successor in running the business as soon as possible.

Website design By BotEap.comGlobal Business Group business brokers face all of these challenges every day. We constantly encourage business owners to think about the future of their business and help them plan for the exit. Do you have any questions about your particular situation? Contact a professional business broker for a free consultation. There is always a way out and experienced business brokers are probably the best advisers in these matters.