Reflecting on your exit journey before leaving your business behind

Exit planning is personal. Your business reflects years of hard work, sacrifice and achievement. When it comes to exiting, you’ll need a strategic plan that meets your goals, prepares you for challenges ahead, and one that brings significant rewards.

Throughout our exit planning series our experts discussed the intricacies that come with each stage of exit planning. In our final edition, Graeme Jack concludes with key reflection points as you near the end of your exit planning.

As you near the end of the exit planning process, it’s useful to reflect on your journey to date and to reflect on the goals you originally set.

Before dotting the I’s and crossing the T’s, is there anything left to tie up? Are there obstacles which could get in the way of you achieving your goals? And have you ensured all of your tax affairs are in order, so you can reap the financial rewards of leaving your business?

As you draw closer to your exit, you should be reflecting upon these goals. Taking the time to look at your goals will help to clarify is there are any loose ends which need to be tied up.

The legacy and the future of your business

If your priorities and goals centre upon your legacy and the future of the business, now is the time to ensure everything is in order with your successor.

Whether it’s trade buyer, your management team, a private equity firm, or your family, your successor will be steering the ship going forward. No matter who your successor is, you need to ask yourself if they are ready to step into your shoes. Are they fully briefed on your vision for the business and the values of the organisation?

Your personal financial future

Protecting the hard-earned success, you’ve worked towards is likely to be on your agenda in some way, shape or form. Now that you’re nearing the end of exit journey have you evaluated your person tax position with meticulous scrutiny?

Whether it’s your inheritance tax exposure, or your capital gains tax liability, it’s crucial to have your personal administrative affairs in order to protect and secure your wealth. This is unique to each and every owner manager.

So, if you haven’t done so already now is the perfect time to seek the expertise of financial and tax advisors. They will be able to ensure that you’re in a secure, strategic and compliant position ahead of your exit.

Where does your exit leave your team?

A lot of the business owners we work with have had the same team on board throughout their entire journey. Others attract new talent into the business with the sole purpose of taking over once they have left their business behind.

Either way, you will need to reflect on what your exit will mean for the people within your business, now that the day you’re leaving is growing closer. This can be a tough balancing act between managing confidentiality and being transparent.

For most, the answer is communicating openly and honestly with your team once your exit plan is set in stone. If this is the stage you’ve reached, have you done so already? Does everyone know where they stand and what it means for them personally? If not, now could be the time to start having these conversations, it can help to mitigate the risk of losing talent before you leave.

How quickly are you leaving the business?

After the last few years of turmoil, some business owners are ready to wind down for good. The speed at which you do so will largely depend upon the exit route you have chosen. If an external buyer is taking over, they might want to keep you on board in some capacity to support the handover process.

If you’re wanting to exit your business quickly, what can you be doing now to make the transition process more efficient? If you want more of a gradual step back from the business, rather than a clean break, it’s worth considering where you can add real tangible value, mentor others and make a difference to the business throughout the transition process.

What will your post-exit future look like?

With the end in sight, are you ready to leave your business behind? For many entrepreneurs, owning, running and growing their business will have given them purpose. And inevitably, this will have taken up a large part of their time on a day-to-day basis.

Have you considered what will fill that void when it comes to the day that you leave? It might give you the extra time to visit new places, spend time with your loved ones or take up a new hobby. It might give you the opportunity to invest in a new business venture. Or maybe your exit will allow you to volunteer your time for a philanthropic cause close to your heart.

However you choose to spend your extra time after you’ve left your business behind, make sure you consider this before the day you finally exit. Your exit could offer a chance to fulfil personal ambitions whilst reaping the rewards of your hard earned success.

Preparing you for life beyond your business

As the day you exit your business fast approaches, it’s important to have the right people by your side to help guide you through.

Our team of trusted advisors are there to do exactly that. They can act as a sounding board and a pillar of support throughout.

They’ve written a comprehensive exit planning handbook which has every cornerstone of the process covered. You can download your copy below, but in the meantime, our team are on hand to help you reach your exit goals as and when you need them. Get in touch with them today to discuss your plan.