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Every business owner should have an exit planning strategy in case they ever move, wants to transition the business to a child or a key employee, or simply want to sell their business. Three-quarters of most business owners net worth lies in his or her business, so exit planning is vital to secure your future.

Here are some tips to help you with the exit planning process:

• Find the value in your business. Not every business can be valued in the same way. One might hold value in patents or processes, while another might have value in intellectual rights. Still another might have a building or location that is extremely valuable. Most value drivers, however, lies in the way you manage and grow your business, like developing a solid management team, establish processes and procedures as well as a solid and diversified customer base. The first part of your exit planning process should always be an effort to find out what the value drivers are in your business and figure out how that value can be transferred to a new owner in the event that you sell. A business is only worth money if its value can be transferred in the event of a sale.
• Determine how much your business is worth. Figuring out what the valuable part of your business is, is only the first step in exit planning. The next is figuring out how much it is actually worth. Determining how much a business is worth requires a judgment call based on a variety of factors, and only someone who is experienced in this area will be able to give you a solid answer.
• Hire an exit planning specialist like Acceler8 to ensure that the entire process goes smoothly. Acceler8 offers services in Arizona. Major problems can happen when you decide to represent yourself in the sale of your business. Confidentiality is extremely important for customer retention, and if you can’t retain those customers for the new owner, then the value of your business drops. You need a smooth transition that the average member of the public is unaware of, and the only way to achieve this is through an exit planning specialist who is familiar with your particular area. For example, if you are located in Arizona, then you should find an expert in your state.
• Remember all of your goals when doing exit planning. Your goals should include personal, financial, and estate planning strategies, and the exit plan for your business should fit right in with these other goals. If it does not, then you have an incomplete plan that will cause problems during the sales process or lessen the chance of reaching your exit objectives..

Exit planning is an important part of owning a business, whether you intend to sell the business or not. Even business owners who are not looking for a buyer often find that they are better off selling, whether it’s because the offer is outstanding, or various circumstances that may come up.

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Exit Planning by Kjell Andreassen