Exit Strategy for Small Businesses
The day you started your business, you were probably thinking of it as more than just another investment. Probably your ultimate goal was to make money, but it became more of a lifestyle choice and a labor of love, so the cash became second to the passion. Well, you are definitely not alone.
Only 12 percent of business-owners in Australia, desire to make money above everything else.
A survey of more than 1,000 small-business owners of Australia, showed that the top reasons why people in Australia start their own businesses. 39% do it for control over their destiny,32% do it because they have a desire for greater flexibility, 29% do it for sheer passion and 27% do it for a total lifestyle change.
While above mentioned all reasons of starting a small business, are romantic and idyllic; these are not very conducive or strategic for business success. In fact, only 12% of business owners in Australia presented that the ultimate objective of their business was to earn money and even out of those, only 11% thought of it as a long-term investment.
Thus, according to that survey; Australians are not in business to get rich yet they do want to lead a comfortable life. So why is it still important to have an exit strategy?
Exit strategy is actually a way to cash out your business. When the time comes to move on, exit strategy is a well-thought plan that makes sure that your final goal is to come out better off. This can involve liquidating your business, passing it on to an employee or family member, or even selling your business.
Planning if and when you want to sell your business from the start, will make the process smooth.
Though exit strategies are more aligned with big corporations but still it is a good idea for a small-business owner to have one exit strategy in mind.
“Even if you aim to hold the business for long term, planning for an exit is still essential”
It helps you make beneficial decisions about your business, knowing areas you could improve to get better results and building up systems that make your business more efficient.
It is similar to owning a house. You may have kept a leaky shower for a whole decade, but when you are looking to put it on the market, you will surely get it fixed. Similarly, an exit strategy is there to force you to keep everything maintained.
Having said that, while preparing exit strategy for your business; consider to list your business with CBC Business Sales.
Ready to sell? Contact CBC Business Brokers Sydney today on 1300 661 498 for a free strategy session.
CBC Business Brokers Sydney
Level 34, AMP Centre,
50 Bridge St,
Sydney NSW 2000
T: 1300 661 498