How to Start Exit Planning

Every business broker San Diego will tell you to plan your exit years in advance. Having an exit plan is the only way you will be able to know when to exit and how to get your business sufficiently ready for the exit. In this post we will be taking a look at the steps you should take in exit planning.

Set goals and timeline

The key to setting an exit is to know exactly what you want to achieve by the time of selling. Having goals in place will streamline your efforts and let you know if you are moving towards or away from the goal. The biggest question to ask here is how much money you want to earn from the sale of the business. You also have to consider things like who will get the business, when you want to leave and so on. Answers to these questions will help set both the goals and timelines.

Your business brokers San Diego will be able to help with this. They know what business buyers are looking for and will ensure you get everything in place in order to fetch the best price. It is also important for your exit plan to be specific. It can be something like I want to leave on October, 8, 2025 and earn $5 million from the business sale. Such a goal is specific, measurable and clear.

Identify your resources

Now that you have your goal and timeline written it is time to take account of your resources. You have to compare the available resources with your goals. If the goal is to earn $5 million from the sale of your business within 5 years, what are your business earnings right now? If your business is valued at $3 million right now you need to fill the $2 million gap within the remaining time. How big the numbers are should not discourage you. A business valuation report from your business broker San Diego will help identify viable opportunities you can use to increase the value of your business.

Make use of value drivers

In the third step the objective is simply to boost your business’ value. To grow your business to where you want it to be you must make use of value drivers. Some of the key things you can do include the following:

  • Improve internal operations
  • Diversify the business
  • Increase business transferability

The best thing is that your business brokers San Diego can help with all this. They know what makes a business valuable and will be happy to give advice that helps speed up the process. Don’t rely on your own knowledge. Seek professional help so as to speed up things.

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