Why It’s Important to Plan the Future of your Business

 There are several important reasons that can and will affect your future:

 

  • Approximately 80% of businesses never sell.  Startling, but true!
  • The primary reason businesses do not sell is that business owners fail to realize the need to plan for the sale of a business. When the majority of owners finally decide to sell, their businesses are not sale-able.
  • Typically, the business represents 50-90% of a business owner’s net worth. If you are unable to sell a business, it can be devastating.
  • It takes time to implement changes in your business to prepare for an exit strategy –  at least a couple of years.  But, it is never too early to start planning for the future of the business and your finances.
  • 98% of all owner I work with, have no idea what the present market value of their business is today.
  • Once they do, almost all realize they are no where near where they need to be to extract the appropriate or expected sales price to support their Post Ownership Lifestyle.
  • Having a strategy early, allows for revenues to be grown, systems perfected and value instilled.

In theory, you should have started to plan your exit the day you started or acquired the business.  Realistically, a very small percentage of business owners do that.  In fact, based on my experience as a business broker, most small business owners never plan for their exit, and many miss the opportunity to maximize the process of “cashing out” to collect the funds they should have earned from their sweat equity investment.

One of the first and best steps you can take positive control, is to call me for a free consultation regarding the sale your business.  Many business brokers offer market evaluations of small businesses, but we can provide a business growth strategy and an Exit Plan based on maximized business value & revenues.

  • Provide a broker opinion of market value
  • Help identify your specific obstacles to a successful sale of your  business
  • Help identify opportunities for improvement to increase the value of your business.
 

That is a great way to start planning for a successful and profitable sale of your business.