{"id":225232,"date":"2023-02-19T10:00:06","date_gmt":"2023-02-19T10:00:06","guid":{"rendered":"https:\/\/www.markperlbergcpa.com\/mark-perlberg-cpa-pllc-wants-to-know-got-a-business-exit-strategy\/"},"modified":"2023-02-19T10:00:06","modified_gmt":"2023-02-19T10:00:06","slug":"mark-perlberg-cpa-pllc-wants-to-know-got-a-business-exit-strategy","status":"publish","type":"post","link":"https:\/\/prosperlcpa.com\/blog\/2023\/02\/mark-perlberg-cpa-pllc-wants-to-know-got-a-business-exit-strategy\/","title":{"rendered":"Mark Perlberg CPA PLLC Wants to Know: Got a Business Exit Strategy?"},"content":{"rendered":"
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The big day is almost here. The Super Bowl. <\/p>\n

And maybe you\u2019re not paying attention because you don\u2019t really care about football, but here\u2019s why you should<\/i>\u2026<\/p>\n

The weeks leading up to the Super Bowl \u2014 and of course, the event itself \u2014 mean big money for not only the NFL but also the plethora of businesses capitalizing on the opportunities inherent in it. I just saw the news that all the ad space is sold out<\/span><\/a>. But even small Atlanta businesses like yours can get in on the action, if you’re creative. <\/p>\n

It might be too late for this for you, or it might not … but here are a couple quick ideas: Throw a party for your customers. Create promotions around it. After the game, do something related to the final score. Talk about the commercials in an email to your customers. <\/p>\n

Even if you don\u2019t seize the moment this year, we can discuss putting together something for next year\u2026 in a way that brings profits and new customers to your business without completely tapping your cash flow. And this applies to so many other opportunities besides the Super Bowl:
calendly.com\/mark-perlberg-cpa<\/a><\/strong><\/span><\/p>\n

My point here is this: Many of your customers care about this event, whether you do or not.<\/strong> And as a business leader, you should care about the things your customers care about.<\/p>\n

Of course, you need to have a plan to take care of your needs too. And it should be forward-facing enough to align with your goals around an eventual exit from the business, whatever it looks like.<\/span><\/p>\n

So, let\u2019s look at that, shall we?<\/p>\n

Mark Perlberg CPA PLLC Wants to Know: Got a Business Exit Strategy?<\/strong><\/span>
\u201cLook on every exit as being an entrance somewhere else.\u201d – Tom Stoppard<\/i><\/span><\/p>\n

Whether you look at stepping away from your Atlanta business next month or decades down the road, it makes sense that a transition strategy is vital. But are you in the crowd of business owners who lack a written plan? <\/span><\/p>\n

It\u2019s a common enough occurrence. Why? Maybe you think the process will be informal, depending more on soft skills and relationships than on facts and documents. Or maybe you just don\u2019t want to think about the subject and so convince yourself that the day will never really come. (It\u2019s hard to let your business baby go.) <\/span><\/p>\n

As I\u2019m sure you\u2019ve guessed, this move doesn\u2019t bode well. How you pass on your company can be just as important as how you started it<\/strong> \u2014 and not just emotionally. A written plan helps you get the most of what your small business is worth. <\/span><\/p>\n

So, let\u2019s take a look at what\u2019s involved in a business exit strategy.Where you are<\/strong><\/span><\/p>\n

A written business exit strategy is a lot more than a note to remind you to shut off the lights when you leave on the last day. Turn your notions into a document by writing out a solid assessment of your worth, activities, and goals (typically at least three to five years out). Your plan should define your current state and establish your goals and a timeframe for selling\/leaving. <\/span><\/p>\n

If you haven\u2019t done this planning yet, don\u2019t beat yourself up \u2014 that can only paralyze you to put the task off more. Most owners have no general plan for their next life, let alone one that\u2019s written out. <\/span><\/p>\n

Fix the details<\/strong><\/span><\/p>\n

What are the goals of your business before you leave it?<\/i> Write them (helps make them real) and work backward: They should dictate your everyday operations of the company.<\/span><\/p>\n

For example: If one of your plans is to go public and someday sell stock, you need to follow certain accounting regulations as soon as possible. If you want to have an in-house or family successor, the quicker you look for and start training that person, the better. M&A? All the reason you need to determine your company\u2019s worth.<\/span><\/p>\n

It\u2019s easier to know where you\u2019re going if you know where you are. How many hours do you put in at the company every day\/week? Are your customers concentrated in any one niche or area (maybe too much so)? How stable are your revenue, supply streams, and staff? <\/i><\/span><\/p>\n

What are your company\u2019s biggest strengths and weaknesses?<\/i> Be honest, or your projections and plan won\u2019t be worth much. <\/span><\/p>\n

Don\u2019t forget your personal goals. What do you want for the future of your family,  your estate, and yourself away from work? <\/i>These answers can help you decide (among other things) when<\/i> you want to sell or leave your company.<\/span><\/p>\n

Crystal ball time<\/strong><\/span><\/p>\n

We don\u2019t have one, either, but an inescapable part of <\/strong>creating a business exit strategy <\/strong>is estimating how long you want to be with the company and how you envision it (or your involvement in it) ending. <\/strong><\/span><\/p>\n

If you\u2019re a sole proprietorship and foresee no future for the company after you leave, you might want to just run it until the operating money is exhausted. This can mean planning when to increase your pay the nearer you get to departure. If you\u2019re in a partnership, when should you start thinking about selling your shares (and what can you do in the coming months and years to make them worth more)? <\/span><\/p>\n

We mentioned M&A earlier. If you\u2019d like to sell to a larger competitor, part of your written plan should detail how you\u2019re going to secure clients in a niche that\u2019s attractive to that larger company. Looking to acquire? How many companies and by when? Detail your timeframe for funding and for approaching those potential acquisitions. <\/span><\/p>\n

Depending on when in your company\u2019s life you\u2019re putting plan to paper, all of the above could be either immediate snapshots or cover two, five, or 10 years, or longer. <\/strong><\/span><\/p>\n

Moving forward<\/strong> with your business exit strategy<\/strong><\/span><\/p>\n

Proper valuation of your business is the lynchpin of your plan, so after you\u2019ve penned all you know about your books, operations, AP, and AR, you\u2019re not done yet. <\/span><\/p>\n

Call in your team and your financial, tax, and legal advisors to finish analysis of how much your company is worth. (We\u2019re happy to help with this.) Bounce their feedback off each other, too. <\/span><\/p>\n

All plans need attention and action to be worth anything. Your business exit strategy is no exception. Working backward from your goals, map out what needs to be done over what seems a sensible amount of time. <\/span><\/p>\n

What potential successor needs to be promoted or trained, and by when? What niche do you have to move into by next year? What should your pay be five years from now? <\/span><\/p>\n

One important action: Revisit the plan.<\/strong> How often will depend on how close you are to leaving. The point is, don\u2019t just write it and forget it. <\/strong><\/span><\/p>\n

Your future isn\u2019t going to wait.<\/span><\/p>\n

We\u2019re here for you in each stage of your Atlanta business \u2014 and as you plan your business exit strategy and beyond.<\/span><\/p>\n

Getting you ready,<\/p>\n

Mark Perlberg<\/strong><\/p>\n

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