I was always told ‘before you sign up for something make sure you know how to get out’. Nothing rings truer than for those of you who own your own business. How do you get out?
After the tumultuous times of Covid, finding employees (let alone good employees – I’m lucky as Initiative has the best employees) and rising inflation, we’ve noticed some business clients are now looking to exit their business.
Knowing when it’s time is a hard decision to make as a business owner. You’ve poured your blood, sweat and tears into this monster and what will you do if you don’t have customers calling you, the ATO asking for money, organising staff rosters, filling our endless amounts of paperwork, keeping your staff busy, ensuring all your insurances are in place, protecting your customers data from cyber attack…..and the list goes on. How will you fill your days?
How will you exit your business? Is your business worth anything to sell? How can you get the best price for your business? Can you just walk away? Will you sell it to an employee? Will you sell it to a 3rd party? Will you put the business under management and just receive passive income? There’s so many options available and choosing the right one for you can be a minefield.
If you’re at the pointy end of working in your business then the above should be front and centre. Your business needs to be ‘sale’ ready at least 2 to 3 years before you even think about selling. Having up to date accounts is just one part of the process. Your systems should be documented, your lease should be reviewed, employment contracts reviewed and look at updating clients ‘hand shake agreements’ with signed contracts. These are just a few of the steps you’ll need to take prior to any sale.
Selling your business is generally only something you do once, so it can be an intimidating process to know where to start. However, as always, we’re here to help with the process.
Author
Kim Jay
