This document discusses the importance of exit planning for business owners. It recommends that business owners consider future funding, potential successors, and documentation as part of an exit strategy. The document was created by Paul Martin Chartered Accountant, which offers exit planning services to help clients map out and implement their exit strategies. These services include assessing finances, creating a list of possible successors, and assisting with legal documentation and transfer of ownership. Overall, the document stresses that exit planning is important for business owners to thoughtfully pass on their business and not just leave it behind.
2. Starting a business can be an
exciting part of your life. From
business planning, execution, to
actual operation. But one day it
will come to an end - you will need
to retire and appoint someone to
take the business, or close it down
for good.
3. Paul Martin
Chartered
Accountant
As trusted business advisors in
Auckland, we help clients to create
exit strategies for their businesses.
Here are some of the things that you
need to consider when planning an
exit strategy:
Exit Strategy Tips
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4. Future funding
Just like your retirement plan, you should also set
aside enough funding for your business after you
are gone. If you own a big company, you should
consider the hundreds of people that you
employ. You can't just leave them behind if you
decide to step down or close the business. But if
you are a solopreneur, it is okay, since you only
have yourself to consider.
Step 1
5. We assess the status of your
finances and make necessary
recommendations based on
your business goals. From here,
we can map out your exit
strategy.
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6. Successors
Part of your exit strategy is finding the right
successor. If you have a family-owned business,
you may plan to turn the business over to your
children or another member of the family. On the
other hand, you can also entrust your business to
a valued employee or to someone you can rely
on.
Step 2
7. We encourage our clients to
create a list of their possible
successors. In the event that
they need to step down from
their business, they have a
ready list to choose from.
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8. Documentation
You need written documents of all the things that
you want to do with your business. These written
documents will be used for legal proceedings in
case you pass away unexpectedly. They will also
be used to present to any investors.
Step 3
9. As the exit day nears, your lawyer
will go over the document and
discuss it with the people
concerned. They will also prepare
everything to legally transfer the
business to your successor.
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