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Module 6 of 6
Exit Planning and Business Value
Thinking ahead to selling, retiring, or transitioning out of your business.
15 min read
Exit Planning and Business Value
Whether you plan to retire, sell, or pass on your business, planning ahead protects your financial future. This module covers exit strategies.
Types of Exit
Selling the Business
- To a competitor, investor, or management team
- Best for businesses with transferable value
Closing Down
- Winding down operations
- Suitable for service businesses dependent on you
Passing On
- To family members
- Succession planning needed
What Makes a Business Valuable?
Buyers look for:
- Consistent, growing revenue
- Profits that don't depend on you
- Recurring customer relationships
- Systems and processes
- Brand recognition
Building Business Value
Even if you're not planning to sell soon:
- Document everything
- Build systems that work without you
- Diversify your client base
- Build a team or network
- Protect your intellectual property
Retirement Planning
Self-employed people often plan to "work forever" but this isn't always possible. Ensure you:
- Have adequate pension savings
- Build value in your business
- Don't rely solely on selling the business
Warning: Many service businesses have little sellable value. Your pension is likely more reliable for retirement income.
Getting Advice
For exit planning, consult:
- A business accountant
- A business broker (if selling)
- A financial adviser
- A solicitor for contracts