All small business owners hope to successfully exit their business one day. If that time is coming soon (in the next few years), you need to have a plan – and exit strategies aren’t “one size fits all”.
For a seamless transition, you need to consider a variety of factors, including exit planning, ownership transfer methods, and your goals. That’s why working with a consultant is extremely beneficial.
At CSI Accounting & Payroll, we’ve worked with small business finances for over 50 years. That means we’ve advised many business owners on exit strategies and have answered questions like:
An exit strategy is a combination of exit planning and considering different methods to transfer business ownership to a:
You’re likely to use a different kind of ownership transfer method for each of these people.
However, regardless of the transfer method, you’re going to want the business in the best shape with at least three years’ worth of exit planning.
Next, let’s talk about what exit strategies might look like.
When you decide to exit your business, you need to talk to your consultant about your goals. That will help you determine your next steps.
A majority of business owners plan to sell their businesses. That means they will want to prioritize profits. This can be done by:
If you want to gift your business to your child, for example, you may decide your goal is to cut them the best deal possible. That means ensuring a smooth transition by planning to:
Not sure how to prioritize one goal over another? You can go for something that’s well-rounded, such as reducing debt for the person buying your business but also securing a decent amount of funding for yourself.
An exit strategy consultant can work with you to find the areas that matter most to you.
Who can help you with exit strategies? Quite a few experts can, including:
Since we offer monthly accounting, let’s hone in on the pros and cons of working with CSI Accounting & Payroll for exit strategy consulting.
No matter the route you choose, your monthly accountant can minimize your tax liability. That can be a huge portion of exit strategy! Plus, they can help you sell your business by:
The only downside of working with a monthly accountant on your exit strategy is that they can’t advise on legal ramifications. For that reason, we recommend working with a monthly accountant and an attorney for a complete exit strategy team. Then, they can help with all of the critical consulting areas!
Now that you know about what an exit strategy is, examples of common goals, and how a monthly accountant can consult you, are you ready to check out monthly accounting services?
If so, please consider CSI Accounting & Payroll! To see if we can be a good fit for your business, click the button below for a free consultation:
Not ready to talk? That’s okay! First, learn more about how an accountant can help set up your business for future success.