By Penny Lee
Specialist Business Broker in Horticulture
Did you know that many business owners don’t realise that their businesses are valuable?
Often business owners simply close down and walk away from their business without cashing-in on the Goodwill that they have built up in their business. What a shame, all those years of hard work; and no reward for their efforts. If they had only known that there was a buyer out there for their business, they may have acted differently.
There is another group of business owner who operate their businesses every day, without planning for the day that they will sell out. Oh! they plan to sell, but they just don’t know when, or how, or who they will sell to, or how much the business should sell for. There is no plan in place, just a vague intention that one day they will sell.
Do you fall into either of these groups? ..or do you have an exit plan for how you intend to maximise the reward that you deserve when you decide that it is time to move on.
Having a plan on how and when you will sell your business is known as having an Exit Strategy. What are the benefits of having an Exit Strategy? With an Exit Strategy in place, you get to sell your business on your terms, when it suits you, and when you are ready. This makes you a CONFIDENT seller. You will be confident because you will know that your business is ready to sell, and that alone makes it very attractive to potential buyers! Without an Exit Strategy in place, you will be a passive seller waiting and hoping that a buyer will come along and solve all of your problems. That is like gambling, and that way you are simply reliant upon chance and that is no way to run a business. Having a proper Exit Strategy in place will allow you to cash-in quickly, easily and scientifically.
Having an Exit Strategy will enable you to:
So how do you create an Exit Strategy? You can talk to an accountant, business coach, lawyer or business broker. Business brokers work in the market every day, and they know what your unique business will require to be ready to sell for maximum value. They can advise on the 17 areas that you need to consider when selling, and how to implement your plans.
An Exit Strategy includes:
Many business owners never get around to actually sitting down and planning how and when they will sell out of their businesses, they procrastinate, and let other issues take priority. Do not put off this important part of business ownership, do it soon and do it today! Business owners with an exit plan in place are often proven to be more effective business people than those who do not. This is because they have focus and direction. They are not aimless, because that know where the business is headed, and exactly what they have to do to achieve their goals. Having direction provides confidence, and confidence enhances performance.
If you’re considering your next steps and would like expert guidance, contact Penny Lee on 0488 601 421. As an experienced business broker specialising in the horticulture sector, she can provide a confidential appraisal to help you plan your exit strategy.
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