Developing a successful business is an incredible accomplishment that takes years and possibly generations of hard work, persistence, and in many cases, luck. But building the business is not quite enough – you also need a way to extract the wealth you’ve created, or at least ensure it stays in your family.That’s where an exit plan comes in.
Is Your Exit Plan Ready?
A survey from the Business Enterprise Institute found that many business owners rely heavily on their businesses for income and wealth, but are not necessarily prepared to exit:
Over 74% of business owners rely on their businesses for more than half their personal income
Over 58% of business owners would exit their business if their financial security were assured
Over 81% of business owners want to stop working in their businesses in the next 10 years1
In a perfect world, an owner will exit their business on their own terms—financially secure, ready to retire, with a willing heir or buyer at the ready. But in many cases, exits happen for unexpected reasons: health issues, financial necessity, or death. Forming an exit plan can ensure a smooth transition, no matter what the circumstances.
1 2019 Business Enterprise Institute
How to Get Started
with Your Exit Plan
Creating an exit plan for a business you’ve spent years growing may seem like a daunting task. But with the right help and expertise, developing a plan may be easier than you think.
It starts with a review of your goals and objectives. We can help you think through and consider the following questions:
- When do you want to leave the business?
- Do you know who you want to sell or leave the business to?
- Would you prefer drawing income from the business after you leave, or do you want to sell it for the maximum amount possible?
- Have you received an independent and objective appraisal of your business value?
- How will you invest the proceeds of the sale to meet your financial needs?
- Have you calculated your income/cash flow needs in retirement? Can your business provide this income for you and your family?
These business-oriented questions need to be considered in tandem with your personal financial plan. Roosevelt Wealth Management has CERTIFIED FINANCIAL PLANNER™ professionals and a Certified Exit Planner to help you navigate all the different variables in play.
Our goal: to help you monetize your business so you can reach your long-term goals.
We hope to help you accomplish two things: