FACT: You will not own your business forever.
If you don’t sell your business you will either:
– Die as the owner, and leave the business to others
– Close down
Either way, you will eventually inevitably be out of your business. So, all business owners really must look at planning for an eventual exit from the business if they want to “cash in” and enjoy the ultimate benefit of business ownership.
· Most business owners wait too long to sell… when the mojo has left them
· You will get more for your business if you sell “at the top”
· In 2011, the median age of Australian business owners was 47, with 22 % over 65 years. Therefore, in 2019 the median age of business owners will be 55.
· About 80% of Australian business owners plan to retire in the next 10 years
· 53% of business owners in Australia have no exit strategy in place
· 22% of businesses will close down
So… even though the majority of small business owners expect to exit their business within 10 years, most of them don’t have an exit plan.
Every business owner should have an exit strategy. Interestingly, very few people start to think about developing a business exit strategy until they are ready to retire, or they become seriously ill, or they suddenly find the business in some kind of trouble.
It’s quite simple….. You have two choices.
1. Do Something
2. Do Nothing
If You Do Something.
We have found that business owners who plan their exit will sell for between 50% to 100% more than those business owners who fail to plan.
No matter what exit strategy you choose – you can guarantee the optimum outcome by simply PLANNING AHEAD.
Exit strategies are something every investor looks for… The questions are the same – no matter what the size of the business. How am I going to get my money out? And how much are you earning from the business?
Having an exit strategy gives you control over your business’s future.
You will be ready to sell if some unexpected event arises.
There are thousands and thousands of small businesses for sale in Australia at any one time. We estimate that there are over 41,000 businesses for sale right now. With a sale plan in place you will be able to “compete” with the other 40,000 + businesses – and you will have an advantage over the others which will help you to sell over the others.
Buyers will be pick and choose only the best businesses. Having a plan in place will put you amongst the best.