Why Your Business Plan Should Include Your Exit Plan...

When you first start a business, the last thing you’re thinking about is leaving it. But, life gets in the way of plans. That’s why you need an exit strategy before starting your business. An exit strategy doesn't have to be negative at all, instead, it can help you cement and realize your vision. Exit strategies help make sure you, your business, and your investors are protected. You must include your exit strategy at the end of your business plan. That way, you can reference it if your business starts going south. And, potential investors can determine if you have a strong plan in place to protect their money if you leave.

Why A Blueprint for the Future Is So Helpful

Your exit plan can impact the direction that you will take your company, impress investors, and even provide you with peace of mind down the road. You should create plans to make the most of your success. Your exit plan gives you a goal to aim for, acts as a measure of your success and crystallizes your vision for life beyond the business. It also helps you visualize your company with the next person at the helm. Do you plan to make a lifetime career out of your company and pass it along to your children as a legacy? Or do you plan to sell to a buyer, or liquidate your assets and close the doors, your exit strategy will guide the direction of your company?

Is Your Business a Short Term or Lifelong Business?

Entrepreneurs have a unique and special commitment to the rigors of their business. Because of their dedication, there is a certain distance they often keep from colleagues, friends, and even family. The very things they do just to survive and thrive in business are also the things that would almost certainly give their spouses serious anxiety. So plan your exit strategy. You should spend some time thinking about how long you want to be involved. Some of you love to start companies and then move on to the next venture once they are established. Others want to establish a legacy that they can oversee s long s they live and even influence after they're gone.

Create and Sell Short-term Exit Plan - Many entrepreneurs dream of one day selling their business to the public for a large profit. However, in the realm of small business exit strategy planning, this method certainly isn’t for everyone—business conditions need to be just right for this option to be possible. You may hope to create a unique value proposition and start earning revenue quickly in order to sell your company to a competitor. You may want to earn enough to move on and begin another venture.
Create a Legacy Plan - Even at an early stage in your endeavor, it’s important to be realistic—and this means thinking far into the future and considering your business exit strategy plan. Even if you spend your entire career owning the same business, most people eventually plan to retire at a certain age. Have you set up your business to make that a possibility down the line? Some entrepreneurs plan to run their business until they approach retirement, and then turn it over to the family.

Mentally Prepare to Exit

Many business owners won’t remember a time before the demands of their company took over. It can be a real challenge to manage the emotions of exiting a business you guided and nurtured to where it is today. By working on an exit strategy early, you can identify the goals you wish to satisfy in your company and logically determine the conditions for your exit. Make sure your business and you are prepared for your exit. You do not have to chisel your exit plans in stone, but you should create them and then revise them periodically.

James E. Wilson CPA Provides Strategies That Can Help Your Business Grow & Thrive

We support clients on a full-service basis. Our business consulting services ensure that you are successful from the launch of your business and as you move forward. We know that there are many aspects of running a successful operation, and that’s why we cover all the bases—offering everything from entity selection and initial setup of your accounting records to accounting software conversion and QuickBooks training. Take a moment to review our complete list of consulting services, and consider the items that meet your needs:

Accounting software conversion and implementation
QuickBooks training and consultation
Management and control systems review
Litigation support
Strategic planning
Entity selection
Financial planning
College education funding planning
Retirement distribution planning
Trustee, executor, and administrator service

James E. Wilson, CPA is a team of professionals provide innovative financial solutions designed for today’s business owner. Our advisors treat each client relationship with the loyalty and care required to properly advise you now and well into the future.

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