Is your business your retirement?
For many business owners, their business is their main asset. When it comes time to think about retiring, they hope to be able to sell their business and use the cash to meet their retirement goals.
The reality is that most business owners will not be able to sell their business or to get the value that they think it is worth. Why?
Because they do not plan in advance to make it happen. Selling a business and getting the maximum value does not happen by chance. It takes planning...several years in advance of when the owner hopes to leave the business.
Think about it. Most small or mid size businesses are built around the owner. If the owner leaves, much of the value of the business leaves also. To avoid this costly mistake, start developing an exit plan 3, 5 or even 10 years earlier than you want to leave the business. That provides sufficient time to build a management team that can continue the business operations after you leave the business.
It also provides time to strengthen areas of the business that may be lacking. To achieve the maximum amount possible for your business, an outside buyer must be able to see the business as on-going. That means having a competent management team in place and having all areas of the business following a defined plan of action. It also means developing the reputation or identity of the business, independent of that of the owner.
At first, the task seems daunting. But, with a well thought out Exit Plan in place, and sufficient time to implement it, you can achieve the maximum monetary value for your company.