You’re thinking of exiting your IS consulting business. What should you consider first?

When considering an exit strategy for your IT consulting business, it's important first to understand your motivations for wanting to leave. Are you looking to retire, pursue other interests, or simply take a break? Once you know your motivations, you can start to develop a plan that meets your specific needs. If you're looking to sell your business, you'll need to prepare it for valuation and negotiation. This may involve making changes to your operations, financial reporting, and marketing materials. You'll also need to decide on a selling price and identify potential buyers. If you're looking to retire, you'll need to ensure you have enough financial resources to support your lifestyle. This may involve planning for Social Security etc

Don't limit yourself to your goals and motivations for post-exit. There are three phases: Pre-Exit, Exit, and Post-Exit. You'll be in each phase for various lengths of time, and they're all different. Your role in the company, your experience, the process, and your relationship(s) to the people involved (and the company itself) will be dramatically different at each phase. Your goals and motivations for each phase will be different as well - at least partially. While your overall goal (exiting) will remain fixed, you're likely to discover transitional goals and decisions that will need to be made/adjusted in each phase. So don't just stick to, "I want to be fishing on the beach." Consider life along the way, and set those goals, too.

You'll need to ensure that any ongoing projects are completed or transferred to another provider. You'll also need to communicate your exit to your clients in a professional and timely manner. - Plan ahead. Start planning your exit early so that you have enough time to transition your clients and projects. - Communicate effectively. Keep your clients informed of your exit plans and provide them with regular updates. - Be transparent. Be honest with your clients about the reasons for your exit and the impact it will have on them. - Be responsive. Address any concerns or questions that your clients may have. - Be professional. Maintain a professional relationship with your clients throughout the exit process.

When considering an exit strategy for your IT consulting business, it's important to think about how your departure will affect your team and partners. You'll need to make sure that they are informed of your plans and that they have a say in the process. You'll also need to consider how you will compensate them for their contributions and how you will protect your confidential information. Communicate effectively. Keep your team and partners informed of your exit plans and provide them with regular updates. Be transparent. Be honest with your team and partners about the reasons for your exit and the impact it will have on them. Be responsive. Address any concerns or questions that your team and partners may have.

If you have concerns and/or goals for the team and partners after you exit, you'll need to adjust your expectations for the exit itself. Taking a realistic look at what kind of new owner(s) are likely to share your concerns and goals for the team, and how that will align with their likely goals for the business is important. Just as it was true when you started selling your consulting services, you need to consider the customer - in this case, the buyer of the company - what are the characteristics of the right buyer? What are their needs, challenges, values, and behaviors? Then target your marketing and sales at those ideal buyers. Set yourself up for success by knowing who you want to sell to, and attracting ONLY those people.

The IT consulting industry is a rapidly growing field, with businesses of all sizes increasingly relying on IT consultants to help them with their technology needs. This growth is being driven by a number of factors, including the increasing complexity of IT systems, the need for businesses to stay up-to-date on the latest technologies, and the growing importance of data security. As a result of this growth, the IT consulting industry is highly competitive. There are a number of large, established firms, as well as many smaller boutique firms. In order to be successful, IT consulting firms need to be able to offer a wide range of services, have a deep understanding of the latest technologies, and be able to deliver results on time.

It's important to consult with an attorney, accountant, or other qualified professional to ensure that you are in compliance with all applicable laws and regulations. - Business structure. The type of business structure you have (e.g., sole proprietorship, partnership, corporation) will affect how you exit your business. - Tax implications. You will need to consider the tax implications of selling your business, including capital gains taxes and income taxes. - Contracts and agreements. You will need to review all of your contracts and agreements to determine how they will be affected by your exit. - Intellectual property. You will need to determine how you will handle any intellectual property that you own.

Remember the first rule of selling anything: know who the buyers are, and set your business up to attract them. Figure out, based on the work you've done above, who would want to buy what you're selling, and why. Then do everything you can to make your business attractive to those people. Even if you're just looking at a buyout from your existing partners, you need to know what they're looking for, so you can provide it. So many business owners forget this basic business concept when it comes time to exit their own business. Once you decide to exit, you have to stop building the business *you* want, and start creating the business your ideal buyer(s) want.