Guest blog by thought leader Greg Johnson
What exactly is ‘exit planning’ and how do I start?
Have you started to ponder your retirement, picturing what life may look like after running a business? With a huge number of baby boomers reaching retirement age there is an increasing number of small to medium-sized enterprises considering future sale. It is more important than ever to start thinking about exit planning. But what does exit planning really mean — and where can you begin?
Research from the MGI Australian Family and Private Business Survey shows that 75% of business owners do not have a well-developed exit plan. Without adequate planning, a large number of business owners will only receive a fraction of what their business is worth. The goal of an exit planning professional is to help you avoid this situation at all cost and achieve an exit that will fund your desired future lifestyle.
What does ‘exit planning’ mean?
As an extension of your financial plan, exit planning is the creation of a comprehensive road map that allows business owners to successfully exit a privately held business. A thorough and well-developed plan will take into account and answer all business, personal, financial, legal and tax questions involved in its sale. A good exit plan will: maximise the value of the business, minimise the amount of taxes paid, and ensure that the business owner is able to accomplish all of his or her personal and financial goals in the process. Completing an exit plan can be challenging but not if you get the right advice and support, and it certainly pays to start your planning as soon as possible.
How do I start the process?
Below is a systematic approach to help business owners start working towards succession. These “Seven Steps to Successful Succession” are designed to increase the value of your business and improve profits while ensuring owners feel ready to step down when the time comes.
"GOOD FORTUNE NEEDS GREAT PLANNING"
WANT TO LEARN MORE ABOUT BUSINESS SUCCESSION PLANNING?
We're lucky to be joined by Greg Johnson at our business succession planning in Melbourne on Thursday 18th July. Come along for more tips, advice and information about how to prepare your business for sale. Click here for more info and to rsvp.
The content of this presentation is intended to be general information only and has been prepared without taking into account any person’s objectives, financial situation or needs. Each person should consider its appropriateness having regard to these matters or obtain relevant professional financial advice before making any financial decisions. Examples are illustrative only. Each person should obtain any relevant professional financial, taxation and social security advice before making any financial decisions.