Tip of the Month
March
The two greatest times for entrepreneurs are when they buy the business and when they sell it! While many entrepreneurs want to eventually exit their business, many have not thought through the necessary harvest plan. With an exit or harvest plan, you need to be thinking of when you want to sell the business, to whom are you going to sell it, and what do you need to do to get the highest price for your business. The day you buy the business is the day you need to start having an exit strategy.
There are four critical things that you need to consider when going through this exit planning.
- Plan a harvest strategy to estimate when you plan on getting out (this can change).
- The business must be able to operate without you at the helm.
- Clean up the balance sheet and the income statement to show as much profit and growth as possible.
- Ascertain who might purchase your business. If you know the type of potential purchaser, you can focus your attention on that market.
An exit strategy is crucial for you from the moment you buy the business till the moment you sell the business. Not only will this strategy increase the likelihood that you will sell at a high price, but it will also insure that you have peace of mind knowing that you will not be forever tied to this business.
|
Location & Hours
850/644-3372