Steps To Develop Your Exit Plan

Step 1

Get Educated- What is Business Exit Planning?

As a small business owner, having a Business Exit Plan is a Good Business Strategy. Exit planning is a comprehensive strategy that prepares you both personally and financially to exit the business on your terms.

A well designed and implemented exit strategy can help create a clear path to operate your business to one day pass the business along, sell the business or allow someone to seamlessly operate your business if you are no longer able to.

Exiting has a different look for each business owner. There is no, one specific, plan. Business planning is unique to your business.

Owners who engage in the Exit Planning Program will receive a custom-designed road map that integrates your business, financial and personal goals and needs.

Step 2

Critical Considerations – The 5 D’s

Owners need to plan for how they want to walk away from their business not only in a perfect scenario, but also in a worst-case situation. Throughout the exit planning process, it is critical to consider the following scenarios that force owners to exit their business hurriedly, and often leaving value on the table. They are often referred to as the 5 D’s:

• Death
• Disability
• Divorce
• Disagreement
• Distress

Step 3

Help Maximize Your Business Value

Exit planning is a business strategy that balances your personal, business, and financial goals.

Step 4

Three numbers every business owner should know and manage to meet their goals:

Step 5

From Successful to Significant

In order for your company to be significant, it must be both attractive to customers and potential buyers, as well as be ready to be transitioned.

On the surface, it may seem like the main goal in exit planning is harvesting the value in your business and exiting happily into the next phase of your life. However, it is so much more than that. The goal of any successful exit plan is to create a significant company.