A checklist for good exit planning
Starting many years in advance, a good business exit checklist can see your business really contribute to your happy retirement.
1. Strategize your exit method, maybe with multiple ‘jump out’ points.
2. Join up your personal and business financial planning, so they can be mutually beneficial.
3. Tidy up any outstanding legal issues well before you want to exit your business.
4. Make changes to the financial reporting so that the business is seen in the best light when the time comes to sell.
5. Manage customer relationships, processes, documentation and marketing efforts to make the business as desirable as possible.
6. Try to define a realistic asking price or remuneration package to feed back into your retirement plan. Be prepared to change your strategy, reverting to a ‘Plan B’ if it’s called for.
If we had to drum home one point, it’s the ‘start early’ mentality. Start planning far in advance of retirement. This lets you have a workable plan that can change and adapt while still offering you the retirement funds that give you the lifestyle you want. Retirement planning, too, is better done early. The effects of compound interest mean that early funds set aside for retirement will have significantly more impact. Why not try out our compound interest calculator?