Maximize your payday by planning ahead.  Any business owner knows that building a business is a time consuming and challenging process.  It required an idea, a passion and a very detailed plan to bring that idea to life - not to mention the hours of sweat equity.  Have you considered that selling your business could be equally as difficult both personally and financially? 

Many people underestimate the complexity and the value of proactive planning.  A proper exit strategy is a process rather than an event and a vital component of your overall plan to maximize the value of your business.  Most businesses require between 3 - 18 months but best practice is to begin your process at least one year in advance.   You will be more successful if you hire a knowledgeable professional to help you understand your options, increase the value of your business and maximize your pay day.

Proper Planning adds significant value - below are some things to consider in your pre-planning process:

·      Are you ready to exit your business?

o   What are your exit goals?

o   Do you want to continue working in your business or exit completely?

o   Are you mentally ready – what will you do?

o   Are you financially ready?

o   How much money do you need to retire?

o   How much money have you saved for retirement?

o   Do you understand the various types of Exit Strategies?

o   Tax consequences – a higher sales price may not yield the best result

o   Work with a professional that can help you decide which strategy is best for your particular situation

Is your business ready for your exit?

o   Get a business check-up to identify issues and opportunities for improvement

o   Improve cash flow and drive profitability

o   Grow sales - buyers avoid a falling knife

o   Strengthen your infrastructure - a well run business generates a higher price

o   Build your brand image - identify future growth opportunities

o   What makes you different? How you are better positioned to win business?

o   Timing – how is the current economy affecting your business?

o   Hire a professional that will work with you to develop a plan to improve your company’s financial health and maximize the value of your business

Whether you are considering a sale of your business now or many years from now, proper planning is vital to a successful exit.  Setting your goals, selecting a strategy and improving your company to make it more attractive to a potential buyer are just the start.  Work with an advisor capable of improving the financial health and adding value to your business before you start down the sales path.  Remember, exiting your business is not an event, it is a process.  Build the business for a successful exit and enjoy the benefits on payday.