3 Ways to Exit your Business - Pick The One That's Right For You

Retirement Transition, Calgary

You have to decide or it will be decided for you

It's great to be a business owner! However, remember there are questions that need answers along the way, like do you own it or does it own you?  Are you building a business or are you creating a job? Can your business be profitable without you? It's easy to feel trapped. It's easy to get so busy that you do not even know if you are profittable. Topics to be discussed in another post. Today is about the 3 ways to Exit your business.
  1. Walk out - this is the best way out. It’s on your terms. You create an exit plan and execute it. This could be in the form of a family member taking over or a key employee being given the opportunity for ownership. The longer you stay and work with the new owner the better the chances of profitability for that business. Who are you grooming to take over your business?
  2. Forced out - this is where you are forced to sell because of an illness or disability. In this case there may not be anyone with the know-how or the funds to take over your business so it may come down to a fire sale. You will end up with the best price you can get. Everyday you are not running your business, the business is losing value. This is certainly not the ideal way out.
  3. Carried out - this is where your pre-mature death takes you out by surprise. Someone else will then have to decide what happens to your business. A grieving spouse will not want to deal with this matter for a long time after your death. Will your business maintain profitability and value during this phase?
Conclusion: Stephen Covey's habit #2 is, "Start with the end in mind". As soon as possible we need to begin to create a favourable transition scenario that will result in the best way out. Some of the areas that we can help with at Langford Financial is helping to build value inside your business and discovering the most tax-efficient way to transfer out of your business. There may be ways to keep yourself on the payroll, even after you have left. We would be happy to discuss your situation and help you consider your options.

Your Trusted Advisors & Retirement Specialists,

Willis & Nancy Langford

Retire on time & Retire with confidence

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