when it comes time to leave your business you need to have an exit strategy
it basically outlines how you will leave the business and what will happen next
all business owners should have an exit strategy that they are working towards
successful entrepreneurs know the importance of having an
exit plan when they first start a business when you know where your business is headed
it increases your chances of getting there and receiving an optimum price for your business
so let's talk about some of the common exit strategies that i see
this involves advertising your business for sale and then selling to a stranger a client a friend
etc the business is advertised for sale and generally sold to the highest offer this is the
most common method of advertising and selling a business in new zealand you basically market your
business for sale receive inquiries and then via negotiations you will come to an agreement with a
buyer a contract is then drawn up exchanged money is transferred and the business sale is complete
if your business has a good market share or is seen as potentially a threat to a competitor
they could be willing to buy your business and merge it into theirs now this type of sale is
usually known as a merger and acquisition or m & a this can usually result in a win-win
situation for both businesses the seller can attain a good price for their business
and the other business can gain new clients products etc at a fraction of
the cost of developing those new clients and products themselves
if your business has a constant and steady stream of income this could be a good option this allows
you to step back from the business while still retaining some ownership you may pass the reins
to another maybe family member or employee and have them buy you out over time this option is
both advantages and shortcomings it depends on what your final goal for the business is do you
still want to retain a portion of ownership or do you want to sell completely and go fishing
The worst business exit strategy of all, but sadly most common, is for an owner
to continue to run the business until they wake up one morning knowing they just can't do it anymore
they start desperately seeking an exit they get in a business broker and they want to know
what's the market value and they take whatever price they can get now the outcome is usually
much less than they could have achieved if they had a planned exit strategy
now unfortunately not all businesses will sell especially at the price the owner expects now
there's the other option is simply to shut the business down and liquidate any stock
and equipment because there has been no plan maybe it hasn't traded profitably or the buyer cannot be
found for the business now these are the least financially rewarding options but also it has a
high emotional impact on an owner who's put their life and soul into a business often over many
years just to see the doors of that business close when it comes to selling your business having an
exit plan is vital if you wish to achieve the best possible solution to your business
give me a call i'll talk to you obligation free and we'll work out the best exit plan
for your business hey thanks again for watching if you like the video and would
like to leave me a thumbs up or a comment ask a question please do so i read and reply to
every comment i answer every question and i would love to hear from you
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