http://tomsshoessaleonline11.tumblr.com,Let’s look at the different ways that a business owner can leave his or her company.
The “Money Machine”: Just Take The Money.
Rather than reinvesting money into growing your business, you turn your company into a “money machine”. You keep things small, take out a comfortable paycheck, and simply live on the income. Remember, money in your wallet is no longer money in the business. If you’re in a business that must invest to grow, taking out too much money can hurt you down the road,sac prada pas cher. If you think you’re in business for the “lifestyle” your company provides,tods soldes, minimize your dependence on a bank and/or partners and structure the business in a way that allows you to draw out cash as needed.
– Who doesn’t like great pay?
– There’s no need to think hard about getting out: Just pull out the money as you make it and/or when you need it.
– The way you pull the money out may have negative tax implications. For example, a high salary is taxed as ordinary income, while a sale of your business would bring money in the form of capital gains, which would be taxed at a lower rate.
– Without careful long-term planning, you may end up pulling out money now,lunette carrera pas cher, which you’ll need later.
– You do this until you pass away and leave the “selling of your business” to your heirs,Chloé pas cher.
The Liquidation,converse pas cher homme.
Even lifestyle entrepreneurs can decide that enough is enough,Chanel pas cher. One exit strategy is simply to call it quits, close the business doors, and call it a day,chanel moins cher. If you liquidate, however, any proceeds from the assets must be used to repay creditors. The remainder gets divided among the shareholders–if there are other shareholders,oakley pas cher.
– It’s easy and it’s natural,tods pas cher. Everything comes to an end,Thinking of Selling Your Business – Do you have an Exit Strategy .
– There are no negotiations involved with other parties.
– There’s no worrying about transfer of control.
– You will not receive any money for your non-physical assets such as your client lists, your reputation and your business relationships, which can be very valuable,lunette carrera. Liquidation destroys them without an opportunity to recover any of their value,lunette oakley 2013.
Selling to a Friendly Buyer.
If you’ve become emotionally attached to what you’ve built, even easier than liquidating your business, is the option of passing ownership to another true believer who will preserve your legacy,lunette carrera 2013,Thinking of Selling Your Business – Do you have an Exit Strategy . Interested parties might include a customer,lunette oakley, employees,burberry soldes, children or other family members. Often in this kind of sale,sac burberry, the seller finances the sale and lets the buyer pay it off over time,tods femme.
The purest friendly buyout occurs when the business is passed down to the family. But remember, the key to “family business” is the word “family.” Is yours functional,Sac Chloé? No sooner than you leave the family business to the kids, it’s possible they’ll end up fighting over who got the larger share,burberry pas cher, who does or doesn’t deserve the ownership they got, and who gets the final word,sacs a main Chloé. They’ll finger-point for a decade while the business slowly declines into ruin. Then, they blame you for not leaving clearer instructions,sac chanel. If you decide to go this route,converse pas cher, you’ve got a lot of planning to do before getting out.
– You know them. They know you. There’s less due diligence required.
– Your buyer will most likely preserve what’s important to you about the business,Thinking of Selling Your Business – Do you have an Exit Strategy ,boutique chanel,Thinking of Selling Your Business – Do you have an Exit Strategy .
– If management buys the business, they have a commitment to making it work.
– Selling to family makes good on that promise you made 15 to 30 years ago,gianmarco lorenzi chaussure, “Someday, son/daughter, all of this will be yours.”
– You can get so attached to being bought by someone nice that you leave too much money on the table,chanel lunettes.
– Selling to family can tear the company and family apart with jealousies and promotions that put emotion way ahead of business needs.
The Acquisition,Prada Homme.
The acquisition was invented so you can sell your business and leave the money to your kids. Acquisition is one of the most common exit strategies: You find another person/company who wants to buy your business and sell, sell, sell. This is when the assistance of a Business Broker is highly recommended,lunette Chloé.
In an acquisition, the purchase price is negotiated,tods chaussures. This is good. The public marketplace places a value on your company relative to your industry and your business assets. How do you select the right company to purchase your business? Look for a strategic fit: What buyer can purchase your company so as to expand into a new market or offer a new product to their existing customers? The Buyer will want to pay a fair price for your company,gianmarco lorenzi boots. There will need to be a “meeting of the minds.” The “meeting of the minds” happens when the Buyer and Seller agree to the purchase price and the terms of the sale,Chloé SAC À BANDOULIÈRE LUCY.
If you’re thinking of acquisition as your exit strategy, make yourself attractive to acquisition candidates, but don’t go so far as to reduce your other options,chanel pas cher. This is when a knowledgeable Business Broker is invaluable.
– If you have strategic value to a buyer,prada pas cher, the buyer may pay more than you’re worth to anyone else.
– If the Buyer and the Seller agree to a fair price and terms, you and your money are in a more favorable tax situation,lunettes chanel.
– If you organize your company around a specific be-acquired target, that may prevent you from becoming attractive to other acquirers.
– Acquisitions are detailed oriented and can be difficult. This is when an experienced Business Broker can make a huge difference.
– Acquisitions come with non-compete agreements and other strings that do not allow you to be completely done with your business for a period of time that is negotiated between the buyer and the seller.
As Dean Burnette of Best Business Brokers states “Start a business with the end in mind. This will make some of the business decisions easier. Why?? The owner knows what his or her end goal is.”
If you want a “money machine”, you keep the banks and any investors to a minimum. A “family” business, you involve the family member in the decision making process to learn what the family member needs to learn. An “acquisition” owner would ask “Will a new expensive piece of equipment add value to my business when I sell the business in X amount of years. If the equipment adds value when the owner wants to sell,Thinking of Selling Your Business – Do you have an Exit Strategy , then the owner buys the equipment. If it does not add value to the company when the owner decides to sell, then the owner does not purchase the equipment. The additional value can come in new customers (higher profits), new product(s) or an increase in the value of the company assets.Related articles: