Is Your Business Sale Ready?

When people look to sell their house they spend some money tidying it up and presenting it in the best possible light. You should do that with your business as well and here’s why!

In NZ there are over 400,000 small businesses. Small businesses make up 97% of all businesses in NZ, contribute 29% to GDP and employ 28% of the workforce. The scary thing? 100,000 businesses will be either sold or wound down in the next 10 years. The baby boomers are all retiring at the same time, how will you stand out when it is your turn…….?

Everyone knows someone who is involved in a small business. People interact with them everyday, be they the local person who mows the lawns, the local coffee shop, the local pharmacy, your lawyer or accountant.

What’s the difference?

Whilst there are many differences in all these businesses the one similarity is that at some point the owner of the business is going to need to release some of the capital tied up in their business.

To get the best outcome, you need to put in place an exit strategy

Why is it important to have an exit strategy in your business?

1)   It sets a course for your business that will ensure you meet and exceed your goals.

2)   It gives a better understanding of how much money you will be able to get out

3)   If something happens and you can’t work in the business there is a plan in place.

4)   It will ensure you have robust reporting, systems and processes

5)   It will ultimately ensure your business is more valuable and sells easier

Whilst the owner may want to continue to be involved in the day to day running of the business it is important that they reduce their personal risk and also get the opportunity to take some of the capital out of the business. This capital can be used for many different reasons.

1)   Reducing personal debt

2)   Investing in a different business

3)   Travel or extra entertainment

4)   Buying or upgrading their property

5)   Purchasing a competitive business to add onto their existing company.

There are also different ways to release the capital from a small business. Including:

1)   Selling the whole business

2)   Selling part of the business to an external party

3)   Selling part of the business to employees

4)    Merging with a larger business and taking some cash in return

5)   Borrowing against future cashflows of a business to pay shareholder advances

So what is the best way to get money out and decide what to do when you get it?

Well that is where our free Liberate Business Group seminar comes in. We will give you a high level view of the positives and pitfalls of all of the above scenarios and can then work more closely with you one on one to design and help implement a full exit strategy for your business. Click the link below to come along

Click here to email me: [email protected]

Cheers

Richard