- Seventeen per cent of small business owners are planning to leave their business in the next two years and 40 per cent are aiming to leave in five years.
- Thirty per cent of small business owners in Australia are now over 50 years of age and this rate is increasing each year.
- There is no doubt that, as the baby boomers near retirement and the average age of small business owners increases, the age-old laws of supply and demand will come into play. In such a crowded market place business owners will need to present their business in an appealing, professional manner to stand out from the competition and achieve the maximum return.
- Sixty six per cent of owners plan to use their business as their primary source of retirement income.
- Forty three per cent aim to realise a lump sum benefit from the business.
- Thirty one per cent expect an income stream.
For these people selling the business in order to retire, it is of paramount importance that the sale price will allow them to retire comfortably and not compromise their quality of life.
- Research shows 70 per cent of business think succession and exit strategy planning is important but only 12 percent have a documented plan.
- A major impediment to succession planning is that most entrepreneurs do not understand the drivers that underpin the creation of an exit strategy. Selling a business is a marketing exercise that requires planning, preparation and a compelling pitch. An exit strategy needs to be achievable and have a realistic timeframe and measurable milestones.
Increase the value of your business and prepare an exit plan
RF Business Solutions will work with your business on introducing proven worldwide systems that will improve the value of your business.
Together we will help you to develop and implement a plan to sell your business for more money. Typically our advisors work with businesses that wish to sell anywhere from 1 – 3 years time.
Steps to Harvesting Your Business
EDUCATION: How are businesses valued? Who buys businesses? Who pays top dollar? What are the secret drivers to improving the business value and what is your business worth at the moment? Are your staff motivated? What problems are your experiencing and what changes are you seeking?
ATTRACTIVENESS INDEX: How attractive is your business to a potential buyer? This audit thoroughly reviews your business and gives you a score out of 100 and pinpoints your weaknesses.
READINESS INDEX: You might be an attractive business, but if you are not ready to sell then your business value can be halved, this program pinpoints your weakness and strengths and give you a score out of 100. RF Business Solutions will provide you with a free Attractiveness Report by sending your request via our contact us page.
EXIT PLAN DEVELOPMENT: We develop a clear plan to help to prepare your business for sale.
REVIEW SYSTEMS AND PROFITABILITY PLANS: To effectively increase the value of your business we will need to review whether the business is driving the strategic direction, the people and the organisations systems effectively.
MONTHLY MONITORING AND REVIEW: each month we will review progress and project manage the plan.
We leave your business with a detailed review outlining your strengths and weaknesses, this includes a detailed action plan and a monthly monitoring system which is linked to a plan to create more value.
- Renewed enthusiasm in running the business as it is now linked to a higher purpose.
- Improved Business value
- Improved chance of selling the business
- Improved systems and people management
- Increase profit and revenue