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You might not have considered an exit plan when you started up your business, but it is never too soon to create one. Many people leave exit planning until they have got bored of running the business, they feel like they have made enough money, or they want to retire. If you are considering life after your business, here are some options to help you create an exit plan.
Decide What You Want
Think about what you want life after business to look like. Do you want to go and do something else? Perhaps you want to stay in the industry, or maybe you would rather just spend your time on the golf course? It is great to have options but until you have painted yourself a picture of what life after you sell your business will look like, you may be a bit stuck.
Sell Your Business Privately
Selling your business privately is one of the options. Find a business realtor who specialises in your industry and decide how much you want to sell your business for and ideally who to. Do you want a buyer who will run the company as it is, or would you prefer to sell to a bigger company that will absorb your company into theirs?
Make sure you have your facts and figures together before you put your business on the market because making it easier for a buyer to see what they are getting will make the process smoother and create fewer problems.
Sell to An Investment Company
Investment companies such as Parabellum Investments give you another great option, especially if you are having trouble selling your business on the open market.
They can invest in your company or buy it from you if you are looking for an exit strategy. Different investment companies specialise in different industries so approach one who knows your industry well.
Liquidate Your Assets
Some entrepreneurs choose to liquidate their assets rather than sell the company. This often happens with smaller businesses who have big assets, people who want to sell quickly and can’t find a buyer, or people that have not built up enough goodwill in the company to make it worth much to someone else. Selling off your assets and winding down is the simplest option but it may not be the most cost-effective one.
Handover
Handing a business over is popular among family businesses. It means that the owner can retire or move on while the younger generation or close family member takes over the day-to-day running of the company. This can be an effective way for a family business to avoid paying as much tax but do discuss your options and any pitfalls with your accountant or lawyer before you take this route. There are always ways of selling businesses and these are your main options. Decide which one is right for you before you go ahead and seek the advice of your lawyer before you sell.
(Photos: Pixabay)
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