The Exit Strategy

WHY YOU NEED AN EXIT STRATEGY

Most business owners are kept so busy running and building their business, they never take the time to formulate a plan for exiting the business.  If you are a business owner, it is important that you give some thought as to when and how you will no longer operate the business.  Age, health, and even a lack of a continuing energy or passion for the business, all may eventually make it necessary to sell or transfer your business.  Other factors such as changes in the market or the need for the business to grow and the fact that the skills necessary for the entrepreneur/owner to start the business are insufficient to make the business grow to the next level are market reasons that a sale or transfer may be inevitable.

If you do not set a plan for when and how to sell the business, it is highly unlikely, if not impossible, that your business will be sold on favorable terms and at an ideal time. 

The best time to sell your business is often when it is doing very well.  It is much more difficult to sell it during a downturn.  You should be prepared to sell your business at any time as you never know when opportunity may present itself.  Additionally, keeping the business continuously prepared for sale helps it stay health and profitable.

Before you are ready to actively market your business, you have to determine what it is worth.  A professional appraisal not only helps you determine what the business is worth, it gives you a powerful selling tool when dealing with potential buyers.