How Prepared Are You To Exit Your Business With Maximum Cash Flow & Profits?

1.   I have created a Business Succession Planning system before I conceived my business structure that will allow me to dramatically increase my business value before I exit.

I started my business a long time ago and did not think about things that would affect me when leaving my business at the time. I have no succession plan in place. I don't know how a succession plan could increase my business value.

I started my business without a succession plan, but am starting to think about arranging something. I need to understand more about how to structure this to increase my business value.

I have a succession plan although it is not formalised. I'm not sure if it will increase my business value.

My original motivation for going into business was to build a substantial asset that I would one day sell to set me up with a financially successful lifestyle. I realised a formal exit strategy had to be incorporated into my business planning from commencement to ensure I would always be in the position to fully gain and capitalise on my investment of energy, time and money, no matter what the circumstances. This has truly cemented and grown my business value to ensure my success. I am positioned to legally reduce capital gains tax substantially

2.   I have a team of succession specialists that are continually working together with me to build a system that will grow my business value, protect my assets and reduce tax when I leave my business

I have not engaged a succession planning team.

I have spoken briefly with my family about this, but I haven't arranged anything yet.

I deal with my accountant who suggested it would be sufficient to rely on my partnership or shareholder agreement for succession planning purposes.

I realise that business value encompasses more than simple multiples of turnover and to fully leverage my success, I need to collaborate with specialists with a range of real life experience who will add value by showing me how to grow my profitability, protect my assets from predators and creditors, lock in my business value with a potential buyer and reduce tax at the point of sale so I keep more of the sell price for my optimal financial outcome after transferring business ownership.

3.   I have vendor finance options and terms in my succession plan that will entice the right buyers and ensure my future financial outcome is certain?

I don't have any vendor finance options. I always believed that to be the buyer's responsibility.

If someone can't afford the business, I will delay selling until someone can pay me what I deserve.

If the new buyer cannot afford to buy me out in one go, I will have to accept payment over time and live in hope that the new owner can run the business profitably enough to pay me for my share in the business.

I realise that willing and suitable buyers for my business may not always have the financial means to afford it so I have built in vendor finance options to my succession plan that will enable this to occur with ease, and therefore allow me to move onto the next phase of my life with the funds I need from the business sale.

4.   I have a succession plan that allows me to realise my full business equity value without any financial disadvantage whether I leave during planned or unplanned times such as unexpected and sudden events caused by co-owner dispute, divorce, bankruptcy, death, accident or prolonged illness?

I don't have a system to allow me to receive my full financial entitlements if I exit my business during unexpected events.

I've spoken to my co-owners about how to handle this, but we did not find a solution. We'll cross that bridge if we come to it.

I have a verbal agreement with my co-owners or family members about what to do in these circumstances.

I realise I will have no ability to negotiate effectively a reasonable sale price if I am forced to leave my business through stressed and unexpected events, so I have a succession plan that enables me to pre-empt this and protect my business asset so that I will realise my full financial entitlements through all the above listed events, no matter what the circumstances.

5.   I have my business ownership structured to reduce tax and provide ownership continuity upon leaving my business?

I don't know how my business structure will be impacted by tax when I sell and I don't know how easily my structure can be passed on to new ownership.

I don't know how my business structure will be impacted by tax when I sell and I think new owners or next generation will assume my structure upon me leaving.

I have a bit of an idea of how I will be taxed if I leave my business, but I'm not aware how this could be reduced or whether it's suitable to easily transition in new owners.

I have sought advice from experts to ensure my business structure will enable me to fully take advantage of the available tax exemptions when I sell my business and enable smooth transition and continuity to the new business owners when I leave.

6.   I have a succession plan that will effectively eliminate my responsibility of debts, loan securitisation and personal guarantees upon exiting my business?

I don't know what will happen to my debt commitments when I leave the business.

I thought I would automatically be relieved of those debt commitments and obligations when I sell or leave my business.

I know I will be forced to repay debts for people for whom I have provided a financial guarantee before I can get on with my life unencumbered

I know that I am still responsible for debts and personal guarantees I have provided against my business assets even when I sell the business, so have a succession plan in place that will alleviate me of this obligation, so I can get on with my life unencumbered and free from commitments.

7.   I have unique terms with my customers and suppliers that are so envied by my competitors that they would pay a premium for my business to gain that exposure.

I have no arrangements with customers or suppliers. I trade as opportunities arise.

I have similar terms with my customers and suppliers as my competitors, so I have no particular advantage that my competitors would pay a premium to gain.

I have a very good customer base and favourable terms with my suppliers, but these are not formalised. Anyone with some know-how could form the same arrangements easily.

I realise the exclusive agreements and terms I have with my customers and suppliers provide a particular competitive advantage that my competitors would pay a premium to acquire and that this is one of the crucial keys to escalating my business value and ultimate success. I have engaged a specialist team to help me to achieve this

8.   I use a systematic approach to build value in the marketplace that easily attracts buyers to my business at the same time?

I don't know how to build my business in a way that attracts buyers easily.

I do have some systems that are not documented, they work for me but I don't communicate these with anyone other than some of the people in my business that needs to know.

I do have some systems in place that are unique to my business, but I'm not sure they're good enough to attract buyers

My business reputation has been built on uniquely developed system efficiencies that have enhanced my ability to steadily grow market share. This has been communicated to my market in a manner that is desired by many. In fact I am regularly approached by people who wish to buy my business, so I will have no trouble attracting a buyer when I decide to sell.

9.   I have a fail proof system of quickly identifying, employing and retaining 'A' players.

I find it hard to employ and retain good people.

I find it hard to employ and retain good people. At best, most people stay for a couple of years before moving onto greater things.

I have some good people who've been with me for a while but in the long run, I expect most people won't stay.

My employer reputation is such that I have the best people in our industry knocking down the doors to win a place in my company. My people stay with me and all of them are valuable contributors to the business because I provide an inviting work environment that encourages them to give their best.

10.   I have a management culture that rewards people I employ with incentive to enable me to fully capitalise with a bigger share of the growing market.

I don't ever provide incentives for my staff.

I would consider providing incentives when staff excels, but this is so rare it's not worth bothering.

Occasionally I recognise staff achievements with a token acknowledgement when they've really excelled. Most people don't seem to give their best, so it doesn't happen often.

I realise to be truly successful in my business, I need the people working around me to be fully engaged and passionate toward the business big picture to profit, so I provide incentive and ownership in the company they will help build to ensure their commitment and enable me to realise a bigger piece of the growing business pie.