Three Things All Business Owners Have in Common
Regardless of the industry, number of employees, annual revenue, or the product or service you offer, if you own a business you have three things in common with every other business owner:
- You don’t want to pay more taxes than you absolutely must.
- At some point, you WILL exit your business.
- When you exit your business, you will leave money on the table if you have not adequately planned and prepared for the day you walk away.
I was recently interviewed by Kenny Harper as a guest of Growth Amplifiers. During my podcast I discussed the stages of a successful exit and some of the obstacles business owners face in getting started with a plan.
Sometimes business owners have blinders on when it comes to exiting their business. You built your business from the ground up, you thrive on running it, and it’s tough to think about walking away. BUT you research and plan meticulously for every other event and decision in the life of your business. Why would you not do the same for your exit? It will likely be the largest financial transaction of your life. Here are a few things I share with business owners to get them on the right path:
- Ideally, your eventual exit is something that should be on your radar even as you start your business. Planning early will mean a better run and a more successful business. You’ll have a more detailed, well-researched course for your business than most business plans yield!
- Pick a future date, write it down, and tape it above the light switch at the door through which you enter and leave your office. As you come and go, you’ll see that date and it will start to change the way you think.
- Time flies! Don’t wait to start developing a strategy for your exit. The more time you allow to plan for and accomplish the objectives you need to meet before exiting, the more you’ll be able to move into the next chapter of your life on your own terms. It’s not something you can accomplish in a matter of months – it requires a minimum of two years, and longer is better.
I walk clients through a seven-step process that includes fact-finding, determining the value of your business, what your business must be worth for your successful exit, who the business will be transferred to, and how it will affect your estate plan. Then together, we develop a detailed strategy and game plan to achieve your exit goals.
Watch my recent video podcast to learn more about the stages of a successful exit. Then, contact me for a complimentary consultation about how to get started. As an exit planning expert and a CEO who has successfully exited a previous business, I can help you develop the strategy and techniques you need to grow the business that will lead to the enjoyment of your next phase in life!
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The information contained in this article is general in nature and is not legal, tax or financial advice. For information regarding your particular situation, contact an attorney or a tax or financial professional. The information in this newsletter is provided with the understanding that it does not render legal, accounting, tax or financial advice. In specific cases, clients should consult their legal, accounting, tax or financial professional. This article is not intended to give
advice or to represent our firm as being qualified to give advice in all areas of professional services. Exit Planning is a discipline that typically requires the collaboration of multiple professional advisors. To the extent that our firm does not have the expertise required on a particular matter, we will always work closely with you to help you gain access to the resources and professional advice that you need.
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Any examples provided are hypothetical and for illustrative purposes only. Examples include fictitious names and do not represent any particular person or entity.