Starting a business can be an exciting part of your life. From business planning, execution, to actual operation. But one day it will come to an end - you will need to retire and appoint someone to take the business, or close it down for good.
As trusted business advisors in Auckland, we help clients to create exit strategies for their businesses. Here are some of the things that you need to consider when planning an exit strategy:
1. Future funding
Just like your retirement plan, you should also set aside enough funding for your business after you are gone. If you own a big company, you should consider the hundreds of people that you employ. You can't just leave them behind if you decide to step down or close the business. But if you are a solopreneur, it is okay, since you only have yourself to consider. Your retirement plan is enough to cover you.
As a business adviser, we assess the status of your finances and make necessary recommendations based on your business goals. From here, we can map out your exit strategy.
Part of your exit strategy is finding the right successor. If you have a family-owned business, you may plan to turn the business over to your children or another member of the family. On the other hand, you can also entrust your business to a valued employee or to someone you can rely on.
It may be too early to think about who will succeed you in the business should you wish to continue it after you are gone. But as business advisors, we encourage our clients to create a list of their possible successors. In the event that they need to step down from their business, they have a ready list to choose from. As your business advisor, we can also assist you prepare for the turnover of your business to your chosen successor.
You need written documents of all the things that you want to do with your business. These written documents will be used for legal proceedings in case you pass away unexpectedly. They will also be used to present to any investors.
As the exit day nears, your lawyer will go over the document and discuss it with the people concerned. They will also prepare everything to legally transfer the business to your successor.
Planning your exit strategy is very important. You just don't leave your business behind. You don't leave all your hard work and let it disappear. You should want to give it to someone who is deserving and who will continue what you have started.
If you need help on what to do, and want to start your succession planning, we can help you.
We are experienced business advisors who will help you map out the best business succession strategy. We also offer GST, tax returns, annual accounts, and other small business accounting services to help you be more efficient in your business. We use the best accounting software in NZ to give you the most timely and accurate financial reports.
We also have flexible service plans to suit your business needs. If you want to know more, request an appointment online or contact us on (09) 576 4166.