Do you know how to unlock the full potential of your business legacy?
Maximising Your Future Starts Today
Are you part of the dynamic generation that has shaped the modern Australian business landscape?
As an entrepreneur, you've navigated the complexities of the market with resilience and innovation.
As you contemplate the next chapter, consider this - only 15% of businesses like yours have a strategic exit plan.
ONLY 15% of businesses have a business exit plan!
If you are one of the 15% who do, celebrate! That puts you in the driver's seat and puts you ahead of the pack.
How can you make it even more relevant and useful?
Consider reviewing and updating your plan based on current market conditions. Here are some starter questions to consider when reviewing:
- What's changed since you last updated your plan?
- And what has stayed the same?
- And is that a good thing?
- Are your numbers up-to-date and accurate?
- When was the last time you updated your numbers?
- Do you have new opportunities or threats to your business you are not acting on?
- How is the current business and economic climate affecting your business?
- What can you do to make your business even more resilient and valuable?
- Have you had any key staff changes?
If you are one of the 85% (1) who don't have a business exit plan, when would NOW be a good time to start? If not NOW, then when?
Read on to discover the benefits of having a strategic business exit plan. Even if you don't plan right now to exit, being exit-ready gives you more flexibility and certainty.
The Power of Preparation
Imagine a future where your business not only continues to thrive but also rewards you significantly when it's time to sell or exit.
Statistics reveal that having a robust exit plan can potentially increase your business's sale value by 50% to 100%.
The key word here is robust. It's not about just creating a plan because of the statistics and believing that is all that has to be done.
It's not the plan that makes the difference, it's the execution of the plan.
The process of writing it down, focuses you on the result. It means you are serious and helps ensure you achieve the results.
First, you decide what you want your exit to look like.
Second, you get buy-in or commitment from yourself, your partners and your team.
Then it is about the execution of the plan - putting it into action. Checking in regularly to see how you are tracking against the plan, by measuring and tweaking what needs to be tweaked! It's not a once and done if you want to see the results.
A business exit plan isn't just about numbers - it's about the culmination of your life's work and the legacy you want to leave behind.
A New Wave of Buyers
The landscape of business acquisition is evolving. What was true in the past, is not necessarily true right now and may not be true in the future.
With the majority of potential buyers being new to the market, there's a unique opportunity to position your business as the ideal choice, if you know this, acknowledge it, research and take advantage of it.
Did you know that only 33% (2) of SMEs successfully find a buyer?
What happens to the 67% of businesses who don't find a buyer?
You probably know the answer to this, because you have seen businesses closing their doors with increasing frequency.
You may know business owners who have had to walk away with little to nothing to show for their 10, 15 or 20-plus years in business. Not only is their business legacy gone, but for many so is their identity with it. The identity of a successful business owner.
Therefore, finding the right buyer is just as crucial as preparing, maximising and presenting your business ready for your business exit.
Your business doesn't just deserve to be part of this minority; it deserves to be the standout choice.
The Ripple Effect of Your Decision
Your decision to sell isn't just about you.
It's about the employees who have been the backbone of your success, the customers who have trusted you, the suppliers who have been part of your journey, your local community who have benefitted and your family members who have supported you along the way.
The decision you make to exit your business and the decisions you make as you prepare to exit have consequences beyond just you.
What happens to all of these stakeholders in your business if you just close your doors?
- Employees may lose their livelihood.
- Suppliers may lose an important source of revenue.
- Local community may lose the ripple effect of the income spent by employees of your business and that of your suppliers' business.
- And family members my lose out along with you, because you didn't realise the financial outcome for your exit to provide for retirement or your next venture.
Is that what you want your business legacy to look like?
Craft Your Exit, Shape Your Legacy
Your business is and always has been for you, more than a statistic.
It's a story of your hard work, dedication, and success. Don't let it fade into the background at this last hurdle.
With the right exit strategy, you can ensure that your business legacy continues to inspire, innovate, and impact the Australian market, long after you've embarked on your retirement or next adventure.
Ready to Take the Next Step?
Connect with us to explore how you can transform these insights into a tailored exit plan that not only maximises your financial return but also safeguards the future of your business legacy.
Sources:
1. KPMG & The University of Adelaide Family Business Report 2021 - based on the analysis of the data collected in the 2013, 2015 and 2017/18 KPMG Australia - Family Business Australia - University of Adelaide National family Business surveys.
2. Australian Institute of Business Brokers (ABB) interview with Bruce Coudrey Managing Director of Benchmark Business Brokers
3. Forbes Inc – Why 90% of Potential Business Buyers Fail – Forbes Aug 2020 by Richard Parker