Begin With The End in Mind
Begin With The End In Mind - Plan An Exit Strategy
Often times owners of small or medium size business do not have an exit strategy in place. As I see this weekly and monthly from entrepreneurs in Canada.
The thought of working on the preparation to have their business sold is very cumbersome and a daunting task. Based on these factors, it usually takes a back seat to other things.
Many entrepreneurs are heavily focused on building and managing their business day to day along with trying run and manage their family life.
That being said, one must begin to think of the end in mind and keep that focus in the back of their mind. The payout at the end is the fruits of your hard work and labor!
If you are a current entrepreneur or thinking of acquiring a business.
Try and ask yourself a few of these questions:
1. Do you have your financials showing the discretionary income add back summary broken down, so you know what is going back into your own pocket? You need to ensure that your accountant isn't just slapping together your financials without the direction of showing certain line items? If not we should talk more!
2. Do you have an option to renew your current lease? This option to renew can increase the overall value inside your valuation and sale price. Further, it will allow you to protect your asset and overall business.
All these little things add up significantly to build value to the new buyers coming on board and consequently will raise your valuation. Try and begin as you start your business with the end in mind. Should you do an asset sale or a share sale? Do you know what option is better for you and do you know the difference? I have personally done both types of deals for my corporations and have assisted in over 100 of these transactions.
Give us a call for a free 30 minute consultation and we can talk more on how to prepare your exit.
Top Shelf Franchising
www.franchiseopportunitiescanada.co
