Exit Strategy

Decide: Stay or go? Consider your personal goals when deciding what to do with your business. If you love working in your business so much that you can't imagine not being involved in it, go for options that allow you to sell the business but retain some involvement and decision-making abilities. On the other hand, if you're hoping to work really hard in order to fund your retirement, opt for solutions that don't require you to stay on after a sale.

I recommend:  For seminars and tips on how to create an exit plan that fits with your personal and business goals, visit ExitPlanning.com from the Business Enterprise Institute. Discuss exit options with your peers on the Small Business Community Forums.

Include your exit strategy in your business plan When writing your business plan, include a section on your exit strategy. In fact, it may be wise to write your exit strategy first because that will dictate many of your other decisions. For instance, once you know what your end goal is, it will influence your choices regarding legal structure, partnership contracts, property agreements and more.

I recommend:  BizPlanIt offers free business plan resources, including the basics on exit strategies, mistakes to avoid and a newsletter about exit strategies.

Place a value on your business Things you need to consider include business assets, historical earnings and even future earnings.

I recommend:  Find valuation methods from the National Federation of Independent Business (NFIB) or try the business valuation calculator from CDNBX.com.

Increase business value Just the way you would spruce up your house to sell it, you need to tidy up your business to increase its value to buyers. Reduce excess stock, overhead and debt. Get your finances in order and prepare sales forecasts. Lock up key employees with incentives to remain after the sale.

I recommend:  Entrepreneur.com provides an overview of exit planning, including preparations you need to take in order to sell your business.

Enlist help When it comes time to sell, consider enlisting the help of a consultant or business broker. They can help you through the tricky process of transferring ownership.

I recommend:  The Principal Financial Group and Abraxas Business Services offer consulting services to help you through the exit process. List your business for sale at BizBuySell.com.

Have a family plan If you have a family-owned business, one of the hardest decisions you'll have to make is choosing a successor. Creating a succession plan and communicating that plan with all family members involved in the business will help ensure a smooth transition.

I recommend:  SuccessFactors.com offers success management software and succession planning Webinars.

Close your business Shutting the doors to your business and liquidating assets doesn't mean your venture is a failure. There are many instances where dissolving the business is the most practical solution. For instance, closing may be the best option if your business is dependent on your expertise, if no family members want to take over or if the economic situation is unfavorable.

I recommend:  The IRS provides procedures for closing a business, including forms you need to file.