At some point in time, every business owner/shareholder leaves their business - voluntarily or otherwise. At that time, they want to receive the maximum amount of money in order to accomplish personal, financial, income and estate planning objectives.
Few give this much consideration at the point of starting their business, however at some stage it will become important.
The business is probably the owner's most valuable asset, comprising between 65% and 90% of the owner's total assets. Financial security depends on converting that asset into cash.
Sometimes the exit may be forced upon an owner, such as the death of a Partner or co-owner, divorce, realisation that the competition is winning, pressure from the family or deterioration in health.
In a nutshell, the very essence of Exit Planning is to facilitate leaving a business on one's own terms.
Decide whether or not you are going to plan your exit from the business. If the answer is yes, then read on. If you choose not to plan, you have by default selected the "work till I drop dead" option - do not read any further - go back to work!
You'd be surprised how many people are too busy worrying about running their own business to think about what happens when they decide to call it a day - maybe you're one of them!
Well it's never too soon to start thinking about it. It's called "Exit Planning or having an Exit Strategy".