Do You Want Wealth, Financial Freedom & Time?
Your best opportunity as a business owner to achieve financial freedom is to build a valuable business that you can sell. But how do you do that & why is it important?
Statistics state that at least 50% of business owners are forced out. Usually by Distress, Disagreement. Disease, Divorce or Death. So, whether you’re planning to exit your business soon or in the distant future, it is vital to consider exit planning to safeguard your interests, and optimise the timing.
You are also, or want to become, a successful employer and feel responsibility to your team, their families and your own family. If something happens to you, what happens to them? Have you got a plan?
You might want to sell up your business or pass it down to your children, but most of all to cash in on all that hard work when you want to stop working or do something else.
But most of all you want to cash in & maximise your return, and not face having to just shut the doors & throw all that hard work away. So, you need a plan.
What do you need to do?
You should consider Exit Planning, after all of what I have said above you might be thinking this is simply good or best business practice. So how does it work?
You need a plan to focus on the road ahead, and aim to do the following:
· Build Value: Create Business Growth using: Sales Drivers, Margins, Team, Systems, Create a track record, due diligence & de-risk from a buyer’s perspective. Track your business’ value against target exit value, so you know where you are in the journey.
· Structure For Sale: a medium-term business plan, Organisation plan, decide on target business value for Exit. Plan & systemise operations to maximise transferable value, by building a business that isn’t solely dependent on you.
· Plan For Retirement: Decide on Your Valuation for Sale & check its Transferable Value matches, consider the tax implications to keep as much as possible, and prepare a deal proposal.
To do all this it helps to have someone to hold you accountable and encourage you to create the business and lifestyle you deserve. But above all, someone who cares about you fulfilling your business potential.
Budgeting: You can do a budget at the start of your financial year, setting your targets for sales, profit and cash flow. Track actual performance against it & see how your business is performing against goals & targets. Spot where things are off track and take action to bring them back in line. Understand what is going well & capitalise on the opportunities, or what isn’t & fix it.
Forecasts and what-if scenarios: Do you want to invest in plant or equipment, grow your team or beef up your marketing to increase sales? You can model how these decisions will impact profit and cash flow.
Final Thoughts
The plan is to make sure that when you decide to sell, you never need to worry about running out of money and be able to do what you really want: the holidays, the house, the car, and plenty of money in the bank.
Less than 1% of Consultants, Advisors or Accountants offer this service. Do it as quickly as possible, because life is short, and you deserve this opportunity.
