You may be familiar with the theory that you are more likely to achieve your personal goals if you write them down. In fact, according to Mark Murphy, CEO of Leadership IQ, vividly describing your goals with pen to paper makes you 1.2 to 1.4 times more likely to successfully accomplish them. Sadly, only 20% of us practice this.
Many business owners spend the majority of their working lives setting goals for their business, but few take the time to develop a strategic plan for when they exit. A successful exit plan is measured by the business owner’s ability to sell the business when they want, for the amount they want, and to the people they want to have it. None of this can happen without setting goals and developing a plan to reach those goals.
Consider these questions as you begin to develop the goals for your individual exit plan:
- What funds do I need to maintain my lifestyle?
- What income do I want each year for the rest of my life?
- Is there a gap between my needs and my wants?
- What is my business worth, and how can it fill this gap?
- What tax implications do I need to consider?
- When do I want to step away from my business?
- Do I want to stop at a certain age, or when I have created a certain amount of value?
- Do I want it to be a slow transition, or do I want to leave all at once?
- Who do I want to take over my business: family, key employees or a third party buyer? Do they hold the same values as I do?
- If family or key employees:
- Have they been identified?
- Are they prepared to take over?
- Do they have the funds to support a buyout?
- How do I find a third party?
- Do I want the successor to take the business to the next level?
- Do I want to acknowledge certain employees?
- Do I want my business to stay in my community?
- Is it important to me that the successor(s) maintain the culture I created?
This is just a starting point; developing the answers to questions like these will allow you to begin to define your specific goals. It will be a crucial first step in building your exit planning road map – the document that will describe what you want in vivid detail, so that anyone can understand your wishes for your exit plan.
ARGI’s team of business advisors are here to help you build and execute your unique exit plan. Contact us today to begin planning your future.
Respective services provided by ARGI Investment Services, LLC, a Registered Investment Adviser, ARGI CPAs and Advisors, PLLC, ARGI Business Services, LLC, and Advisor Insurance Solutions. All are affiliates of ARGI Financial Group.