Own a Business? Start Exit Planning as Early as Possible!
If you are a business owner, being prepared for your inevitable exit from your business is crucial to a successful retirement. By making these plans early on, you may avoid or minimize any issues that can arise from your departure and help make the transition as smooth as possible for both your employees and the buyer.
This article by Forbes New Your Business Council offers some insight on important steps to take in preparing a plan – and even a backup plan – for your retirement.
It’s important for your business to be in top shape when you go to sell it. You can take steps now to ensure that you’ll be able to sell it for a good price when the time comes, such as updating your operating agreement, your buy/sell agreement, and employee contracts as needed. It may also benefit you to incentivize key employees to stay once you’ve left the company.
If you have intellectual property, it might be a good time to look into protecting it as a trade secrets or a patent. This will also enhance the value of your business to prospect buyers.
Above all, it’s important that you work hand-in-hand with a team of advisors from the beginning of the planning process. This includes a Certified Exit Planner, a business attorney, financial advisor, and others.
If you’re ready to start planning for your financial future, call Rhodes Law Firm today!