Are you on the Pathway to Success and have an exit strategy for your business? Every business at some point will need an exit strategy, whether that is transferring to family members or selling the business. Planning is important to overcome the obstacles of any exit strategy. There are “fatal business errors”, which impact daily cash flows and profits, that will limit the business from maximizing its potential and its long-term value.
Up to 90% of your net worth could be tied up in your business. But did you know that only 2% of business owners know the value of their business … are you one of the 98% that doesn’t know. In addition, only 25% of small businesses ever transfer or sell, which means 75% of businesses never do. The #1 reason is because they do not plan.
Ask yourself the following questions to see if you have positioned your business correctly, so you can generate the most value out of your business. Or do you need to put a plan in place to maximize the value of the business.
Do I know what I will do for income when I retire?
Do I know how many $$ I will need when I retire?
Is the company’s financial performance above industry average?
Are the business’s operational processes and protocols documented?
Are the record keeping and the accounting procedures up to date?
Do the cash flows sufficiently support the business’s operation?
Is the current management team capable of growing the company?
Can the company run without you day to day
Is the customer base diversified across industries?
Is each individual customer less than 10% to 15% of revenues?
I have identified family member(s) or employee(s) which in which I can transfer the ownership of the business?
Do I have an exit strategy?
If you answered yes, confidently, to all the questions, congratulations you have successfully planned your exit strategy and may be ready to address transferring or selling your business.
If you answered no or possibly, I don’t know, to any of the questions, you need to take time to improve the operations to maximize the value of your business. The greater number of no and unsure answers; the more time you will need to plan, so you can effectively implement an exit strategy and generate value.
CEO CoSulting can collaborate with you to address the financial, strategic planning and operation challenges your business may have, which is limiting its financial value. We start with the CoSulting Business Valuation, which allows you an affordable and online business valuation option, so you know what your business is worth. The 29-page report is the road map for you to develop and implement financial benchmarks and strategic initiative to increase your profits and cash flow, so you can maximize your business’ value.
Click here to schedule a complementary appointment, so we can get together, and you can begin your Pathway to Success and release the full potential of your business.