Business Tip: Setting your goals

Every business has a finite lifespan. Some may last for decades, and some may only last a couple of years. As the owner of a business, the life of your business is likely to be strongly aligned with your own life goals and personal plans for the future.
When the time comes to sell up, it’s important to know what your goals are for the sale. Are you looking to retire? Or do you have a burning ambition to start a new venture? Planning for a sale can take up to 2 years to maximise the value of the business and get it ready for sale. This step is often missed but is extremely important. Planning is key! 

Define your exact goals from the sale of the business
At the point of planning an exit, you need to think carefully about WHY you’re selling up and WHAT you want to achieve. This is a huge change in your life, your business career and the fortunes of your company and employees.
Ask yourself what your true goals are from this exit:
Do you want to retire, ease the pressure and enjoy some freedom?
Has this business journey come to an end, and you need a new challenge?
Do you need to free up your capital to invest in other business or personal projects?
Is there a worthy successor who’s itching to jump into the hot seat?
Whatever the motivation for a business exit may be, make sure to consider your options and decide on some concrete end goals.

Who is going to take over the business?
Rarely are business sales a simple process and by putting the company on the market you’re opening yourself up to a complicated process of negotiation, financial agreements and legal wrangling.
Knowing who will take over the business can be difficult to predict, but you do have several options when it comes to the end outcome.
For example, you could:

• Sell the business outright to a new owner and remove yourself from the company
• Sell the business but remain on as chairperson or a non-executive director (NED)
• Merge the business with a sympathetic competitor to aid their growth
• Agree to a partial or complete acquisition from a competitor or private equity firm
• Pass the business on to the next generation of your family
• Agree to a management buyout from your existing team.

Getting ready to exit the business
Selling your business is a big move, it’s invaluable to have the best possible support and advice to guide you through the sale process.
Run your exit goals past us to advise you on implications you may not have thought of, and any tax implications that may affect your decision. As a founder, it can be difficult to be objective about your business. External advisers have the advantage of being able to look from the outside in, with real objectivity. This helps you get independent, expert advice on your exit goals, your strategy and your tax planning.
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If you’re thinking about selling up and moving on, please do get in touch. We can give you the advice you need and set you on track for a successful and profitable sale.