Exit Planning is Good Business Strategy

Exit Planning is Good Business Strategy

The best businesses are ready to sell at all times. Today we are breaking down why exit planning is important even if you’re not ready to sell to increase your value and income.

Small Business Owners: Exit planning is a good business strategy

Full Transcript:

Anthony Saffer 0:00
The best businesses are ready to sell at all times. Today, we’re breaking down my exit planning is so important. Even if you’re not ready to sell to increase the value of your business and your income. Okay, Alex, a lot of business owners think that they’ll plan once they have time. They’re so busy running the business, why focus on exit strategies when it’s so far into the future?

Alex Okugawa 0:21
Yeah, and unfortunately, we’ve had business owners come to us either after they’ve sold their business, or they’re so deep into the negotiation process, they’re coming to us basically saying, Hey, here’s what my after tax proceeds are going to be for my business sale? Is this going to be enough to meet my needs? Yeah, unfortunately, it’s often too late at that point, exactly. But if planning is done ahead of time, what we can do is figure out what does your business need to sell for? And what are the after tax proceeds you need in order to meet all of your goals, needs and desires. And then what we can do is have your business valued, right? If you were to sell today, what is the value of your business? Now usually, there’s a gap, there’s a gap between what you need your business to sell for, and what it’s currently worth. And that’s called a value gap. And that presents an opportunity for us to work on increasing the enterprise value of your business so that when you do go sell your business will sell to meet all your goals, needs and desires.

Anthony Saffer 1:14
Yeah, the timing is important, because if you wait too long, you can make the task impossible.

Alex Okugawa 1:17
And you also miss out on a lot of planning opportunities, a lot of tax planning, a lot of charitable giving strategies that can ultimately reduce the tax bill on the sale of your business.

Anthony Saffer 1:29
Too many business owners are focused on income generation and not enterprise value. But the truth is, if you focus on the value can have the income to just not the other way around.

Alex Okugawa 1:38
Yeah, you can have both and there’s four main capitals that you need to focus on in your business. There’s the human capital side, there’s the structural capital, social capital, and customer capital of your business.

Anthony Saffer 1:51
So we’ve written a complimentary guide for you. You can download that it’s focused on answering the critical questions of these four capitals.

Alex Okugawa 1:59
Absolutely. And we want to help you maximize the value of your business, ensure that you are personally and financially prepared and ensure that you’re ready for this next phase of life when you’re no longer a business owner.

Anthony Saffer 2:11
To download your complimentary business owner’s guide. Go to one degree advisors.com you can download that today.


This does not constitute an investment recommendation. Investing involves risk. Past performance is no guarantee of future results. Consult your financial advisor for what is appropriate for you. Disclosures: https://onedegreeadvisors.com/solutions/#disclosures

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