Preparing to Move On - Why Every Business Needs an Exit Strategy

There’s frequent talk about “exit strategies” in business circles, but what does this mean? An exit strategy goes beyond just selling your business — it’s about proactively preparing for the day when you’ll transition out, whether that’s on your terms or due to unforeseen circumstances. I know you're thinking this won’t happen to me!

Why Plan Your Exit?

 Many owners only consider their exit when forced by circumstance — health changes, shifts in personal relationships, retirement, burnout, or financial needs. The reality is, having a plan in place puts you in control and ensures you’re prepared when the time comes.

Key Steps for a Successful Exit Strategy

 Start Early: 

Planning years in advance gives you more options and time to achieve the outcomes you want.

Clarify Your Goals: 

Are you seeking financial freedom, building a family legacy, or creating a business to sell? Defining your goals will guide your exit approach.

Explore Your Options: 

Options include selling the business, transitioning it to family or employees (succession), or selling shares in stages. Each path has unique benefits and considerations — choose what’s best for your goals and situation.

Maximise Business Value: 

Regularly improve business operations, financial performance, and systems. A well-run business is more attractive to buyers and will command a higher value.

Exit Strategy Examples

 Succession Planning: 

Prepare to transfer leadership to family or key employees to preserve your legacy.

Full Sale: 

Find a buyer who values what you've built and can take it to the next level.

Partial Sale (Shares): 

Transition out gradually by selling shares, allowing for a flexible timeframe and a smoother handover.

Additional Considerations

 Engage with professional advisors early, including business brokers, financial planners, and legal experts, to understand your options and maximise results.

Consider the tax implications and legal requirements of your exit plan.

Final Thought

The best time to create your exit strategy is now. A robust plan protects your interests, maximises business value, and helps secure your legacy — whatever your motivation for moving on may be. Start planning today to ensure your future success.