Business Exit Plan, Business Exit Strategy, Exit Business Ideas, Software
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Planning a Business Exit Strategy is as important as figuring out how to start a business. Nobody likes to think about it, but it's inevitable that one day you will leave your business and need to think about your Business Exit Strategy and Business Exit Plan before you do.
Whether you decide to sell up, retire or have to Exit Business due to health reasons, it's important that you plan for that day when you do have to Exit Business. A succession, or exit, plan outlines who will take over your business when you leave.
Business Exit Strategy – a Business Exit Plan that sets out how the current owners plan to leave the business. The Business Exit Strategy normally includes the method of the exit, a succession plan for transition to the new owners, and details such as timing and sale price.
After you Exit Business, if you ever need a good Business Accounting Software, you can get that here on our website, our ShopMate Business Accounting Software just may do the job for your New Small Business.
You may also brush up and read on Accountancy Theories...
Consider the issues in this article when you're in the thinking stage to Exit Business. When closing, selling or winding up a small business or any business you need to address a number of issues, such as company and business name deregistration, employee payments and cancellation of taxation registrations.
For information on what to do when you close down, sell or transfer ownership of your business, read the following topics.
When prospective customers had a business or had it on their mind, traditionally, Softhard Solutions was able to provide them with accounting software (often also hardware) to run their business the way they do the business.
There were, at many times, Softhard Solutions' customers who did not quite have a clear picture of the Exit business strategy they wanted to do or undertake.
This page is dedicated to people wanting to exit business. Its all tips and 'need to know' about an exit business and what to do before an end.
What ever your destiny may turn out to be, you are heading the right direction - independence after exiting - right? Well read on to get some clues...
Nobody likes to think about it, but it's inevitable that one day you will leave your business. Whether you decide to sell up, retire or have to get out of business due to health reasons, it's important that you plan for that day. A succession, or exit, plan outlines who will take over your business when you leave.
A good succession plan enables a smooth transition with less likelihood of disruption to operations. By planning your exit well in advance you can maximize the value of your business and enable it to meet future needs. Make sure your succession plan is attainable - set a realistic timetable and measurable milestones along the way and stick to them.
- Contact your nearest Business Enterprise Center for free advice and support.
- Consult your nearest Small Business Field Officer for free general advisory services to small business.
- Your industry association may be able to assist - search directory for contact details.
- Get professional advice from an Exit Business adviser, accountant or solicitor.
Selling your Business
Selling your business is one of the most important decisions you'll have to make. Deciding how much your business is worth is one of the main issues you'll need to consider.
Other factors to consider when selling your business include when is the best time to sell and whether you should make use of a broker or other professional to maximize selling opportunities.
Valuing your business
There are a number of methods for valuing a business, including valuing the goodwill component. To realistically value a business you need a good understanding of the marketplace. Over a period of time an industry usually develops its own rules of thumb by which a business is to be valued.
There are also formulas that can be used to arrive at the approximate value of a business. One of the most important factors to consider when calculating the value of a business is its future earning profitability.
Closing your Business
Bankruptcy & insolvency
If you can't pay your business debts, and haven't been able to reach an agreement with your creditors, then you may decide to go bankrupt. The Insolvency and Trustee Service Australia (ITSA) is the government body responsible for the administration and regulation of the personal insolvency system in Australia.
Before you become bankrupt, you must read ITSA's Prescribed Information booklet, which gives you details of alternatives to bankruptcy and the obligations and consequences of bankruptcy.
De-registering or winding up a solvent company
If you're going to end your business, you may decide to wind up the company, or simply deregister it. You can de register a company if: all members of the company agree to deregister; and the company isn't carrying on business; and the company's assets are worth less than $1000; and the company has paid all fees and penalties payable under the Corporations Act 2001; and the company has no outstanding liabilities; and the company isn't a party to any legal proceedings.
ASIC provides information on deregistering a company, including the necessary downloadable form. The members of a solvent company, who're unable to deregister, may decide to wind up the company.
The Australian Securities and Investments Commission (ASIC) website provides information on steps that must be taken and the required forms that must be lodged when winding up a company.
Cancel your business name
If a business name is no longer required you'll need to complete and lodge the appropriate forms with your relevant state governments. The time allowed to lodge the form following cessation of business varies from state to state.
At some point you may need to transfer part or all of your ownership of a business to your children or bring in a new business partner.
You can meet the specific needs and objectives of family members and or a new business partner by issuing different classes of shares. This allows you to determine what level of influence they will have over the operation of the business.
The main advice many small businesses require relates to the tax implications of the transaction-based events associated with selling or closing their businesses. This advice may involve separating business and property assets to facilitate the transfer of trading businesses.
See the Tax Office ending a business essentials page. Contact your accountant or solicitor for advice on how to transfer ownership.
You must tell the Tax Office if you have ceased trading or your business has been sold. You must also cancel your various registrations, such as Australian Business Number; Goods and Services Tax; Luxury Car Tax; Wine Equalization Tax; Pay As You Go; or Diesel and Alternative Fuel Grant Schemes.
Keep your details up-to-date to make sure that any activity statements the Tax Office sends you reflect your current situation.
All activity statements that are sent to you must be lodged – even if this is a 'nil' report because you have not traded in that period – and paid by the due date.
Dealing with Employees
When a member of your staff leaves your employment, you'll generally have to make some sort of final payment to them. Many of these payments are known as eligible termination payments (ETPs).
Depending on what's included in the payments you make, you'll need to take out different amounts of tax.
You may also be generally required to make a bona fide redundancy payment. This is a payment made to an employee who is dismissed because the job they were doing is made redundant.
The Tax Office provides guidance on meeting your obligations to employees who stop working for you.
Some tips on how to avoid business failure:
- Don't underestimate the capital you need to start up the business.
- Understand and keep control of your finances - income earned is not the same as cash in hand.
- More volume does not automatically mean more profit - you need to get your pricing right.
- Make sure you have good software for your business , software that provides you with a good reporting picture of all aspects of your business operations.
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