Should I have an exit strategy before selling?
Yes. It’s important to have an exit strategy as part of your business plan. An exit strategy will outline what happens to the business when the current owner decides it's time to leave. The strategy could involve selling to a competitor, engaging a business broker, transferring ownership to a family member or selling privately. It will outline when is the best time to sell; perhaps when net profit reaches a certain point, when the owners plan to move, when a patent or trademark is approved or when the owner is ready to retire.
In reality, very few business owners have an exit strategy and usually sell their business when life forces the sale, such as; relocating, sickness, retirement, increased expenses or downturn in profit. If you give yourself enough time to plan your business sale, you can set up an exit strategy.
> Your Guide to Selling a Business
Tags: sellingprivately
