Clarity on the best way forward for your business, managing the challenges of the year ahead, and how to handle an earn out.

Welcome to the latest Watering Hole. This edition looks at getting clarity on the best way forward for your business, the challenges of the year ahead and tips for managing them, and how to handle an earn out.?

?

Achieving Growth?

How do you get clarity on the best way forward for your business? Doqaru Limited worked with Crawfurd Walker to map out how they achieve growth in their business over the next three years and make sure they focus their energy on the right things.?

Find out how they found our business growth planning process:

Tackling Challenges?

?For the Herd, September marked the start of a new business year for our own business. As we look ahead and make plans for the year ahead, Martin Brown our CEO has looked at some of the challenges we'll need to tackle and has tips for how you can manage them in your business too.?

?

Preparing for Exit?

When selling a business, earn-outs are a common structure agreed between buyer and seller to – in theory – ensure a smooth transition between owners.? With an earn-out, an owner (and sometimes other key personnel) will agree to stay involved with the company for a defined period after the sale in return for a higher valuation for the business.?

Here are five things to keep in mind when considering an earn-out.?

1. Work on the structure and make sure the initial payment is above your threshold of acceptability just in case the other payments don't happen?

2. Don't expect a smooth run - it can be difficult going from entrepreneur to employee?

3. Consider a partial exit - this works well if there is a good relationship between buyer and seller, and gives the business owner security and the opportunity to keep growing the business?

4. Things will get stressful - there are lots of decisions to make and it's an emotionally challenging process which often takes around nine months?

5. Seek advice - Most entrepreneurs only sell a business once, so it's vital to work with advisors who have the experience to guide you through the process.??

You can read all of our SME insight articles here.???

Found this useful? Feel free to share with your connections.