When it comes to passing on the torch for your business, those who have prepared an exit strategy can expect their business to be more likely to endure than for those who haven’t. Think of it like writing a will; if you neglect to do so it’s likely that your next of kin will end up with unforeseen tax lumpsums and other important things falling through the cracks. In this post we’re going to explore a few different tips and guidelines which can help you develop a successful ‘exit strategy’ so that when the time comes, your business can thrive in your absence.
Sooner Rather Than Later
You don’t know what’s around the corner, so why shouldn’t you start making preparations now? Particularly if you’re nearing the retirement age, you may find that you won’t have time to do this later on, so our advice would be to start setting things in motion now to be on the safe side.
What’s Stopping You?
Typically speaking, the biggest thing that gets in the way of people building an exit plan is laziness and procrastination. We do it with most things in life, ‘I’ll get to it soon, I’m just too busy at the moment’ – and then invariably we never do get around to doing it.
It’s understandable though, who likes the thought of retirement? Sure, you won’t have to work anymore which is always a plus, but to contemplate retirement is to contemplate one’s mortality, as the clock is always ticking for all of us. In addition to that, preparing an exit strategy means handing your baby over to someone else, something which is difficult for all of us.
Remember that planning for the future is giving up, it’s simply being prepared, that’s all.
Groom a Quality Team to Take Over in Your Absence
Now is the time to start considering who will be in your succession team when you leave. Whether that’s family members, close friends or exceptional individuals who have worked closely with you and you trust with your business. If you’re feeling overwhelmed by the prospect of it all, you can get in touch with a reputable company like Prime Numbers Accountants for more advice on how to prepare your strategy for the future.
Training in Preparation
Once you’ve chosen who you would like to be your successor(s) when the time comes, you’ll have to begin training them properly for the transition. You will also have to consider any conflict which may arise if you’re choosing a family member over another senior member of staff. It’s no easy decision, so take your time and be sure to delegate the work fairly and appropriately.
Potential Outside Buyers
If in the event that there is no one that you’re comfortable leaving your business to, it might be worth researching an outside buyer. In this case you will need the help of a reputable accountant to prepare your business properly for sale. This means going over a number of different systems in order to display to your potential buyers that the business is and will continue to be profitable. These changes take time, so begin as soon as you can in order to achieve the best possible results when the time comes. In which case you’ll be able to enjoy your retirement in the knowledge that all your hard work hasn’t been for nothing!