Timing your exit<\/h2>\n\n\n\n
When you\u2019re developing your business plan all the way to the end, you\u2019re outlining the actionable steps on that path that will get you there. Which is just good business practice. <\/p>\n\n\n\n
What triggers will initiate your exit strategy? The first buyer who makes an offer? A buyer who shares your values? <\/p>\n\n\n\n
Perhaps your metric is a specific financial goal, or an achievement such as the number of clients served. <\/p>\n\n\n\n
While you can\u2019t foresee every outcome, it\u2019s also worth thinking about external factors and life events that could initiate your exit strategy. <\/p>\n\n\n\n
Market or industry forecasting, demographic changes in your community, and fluctuating global markets could all impact your business. Or perhaps there will be changes in your family\u2019s needs, or your own health and wellness, that could put your business in the backseat. <\/p>\n\n\n\n
Your business plan already includes your goals and purpose, both short- and long-term. Your exit strategy just takes this one step further and sees those goals through.<\/p>\n\n\n\n Know your worth \u2014 your business\u2019 worth, that is. This is a key component of any exit plan and, again, it\u2019s just good practice for business owners. <\/p>\n\n\n\n At its most basic, when you assess the value of your business you\u2019re calculating the difference between your assets and liabilities. It may also involve an assessment by your lending institution. Finally, it may help to have a detailed record of financials that show your business\u2019 true worth over a period of at least three years.<\/p>\n\n\n\n If this sounds overwhelming \u2014 don\u2019t panic!<\/p>\n\n\n\n With Clear Books online accounting software, it\u2019s easy to track your business earnings and know your company\u2019s worth. Invoicing, expense tracking, VAT reports, balance sheets, as well as profit and loss statements, your business\u2019 financial information is at your fingertips from anywhere in the world. <\/p>\n\n\n\n Determining your business\u2019 worth is an essential part of an exit plan, and with Clear Books, it\u2019s a manageable task without headache or hassle.<\/p>\n\n\n\n Maybe your exit isn\u2019t a \u201chard\u201d exit, and instead is a gradual transition into a new role or a new business. How will you pass the reins to the next CEO?<\/p>\n\n\n\n Transparency is a key component of a healthy transfer of either ownership or leadership. <\/p>\n\n\n\n You want to make it as easy as possible for your successor to understand all aspects of your business. Spending time designing the orientation resources they\u2019ll need \u2014 a manual of your procedures and protocols, a master document that includes contacts for software support, a listing of all of the software and automations you\u2019re using \u2014 is a great place to start.<\/p>\n\n\n\n And the good news? If you have Clear Books software for your business finances (including payroll), your financial operations are already documented digitally, which will give your successor all the information they need to hit the ground running. And that means you can pass the baton with confidence, whenever you\u2019re ready to do so.<\/p>\n\n\n\n Whether you\u2019re selling your business outright or slowly stepping away, with an exit strategy in place you\u2019re the one who gets to call the shots in your endgame. And keeping an eye on your eventual endgame will set you up for success at every stage along the way. <\/p>\n\n\n\n![\"exit](\"https:\/\/www.clearbooks.co.uk\/blog\/wp-content\/uploads\/2022\/08\/Exit-strategy-body-image.png\")
<\/figure>\n\n\n\nCalculate your business\u2019 value<\/h2>\n\n\n\n
Not a hard exit\u2026 but a new chapter<\/h2>\n\n\n\n
Clear Books Online Accounting Software<\/h2>\n\n\n\n