What is an Exit Plan?
Like many Aussie business owners, you probably started your business from scratch and built it up over time. While you’ve worked hard to grow it to where it is today what you’ve probably never done is bought or, more importantly, sold a business. Which is why you need an Exit Plan.
Selling your business is only one of the options that a good Exit Plan should include, but it's a big one, and it takes preparation.An Exit Plan is the roadmap to selling your business for its maximum value and should include:
- A statement of your business and personal goals
- A current business valuation
- A plan to maximise that value
- An evaluation of the pros and cons of different strategies for exiting the business
- Tax planning
- A detailed action plan
A good Exit Plan guides you through the steps needed to achieve your business and personal goals when you exit, whether that’s three, five or ten years away.
The aim of an Exit Plan is to ensure the survival of your business, provide continuity to employees, customers and suppliers, and to preserve wealth for you and your family. Without it you’ll risk paying too much tax, being reactive not proactive, and selling for far less than the business is worth.
It’s never too soon, or too late, to start exit planning.