The Best Time To Start Exit Planning

Why Exit Planning Matters — Even if You’re Not Ready to Exit Yet

Life gets busy when you’re running a business. Between managing staff, serving clients, and keeping the lights on, it’s easy for long-term planning to fall by the wayside. But planning for the future of your business, particularly your eventual exit, is one of the most important decisions you’ll ever make. That’s why it helps to have someone like us in your corner, focused on your longer-term goals while you concentrate on day-to-day operations.

Why Start Planning Early?

We recommend giving yourself at least five years to maximise the potential value you can extract when you eventually exit your business. That might sound like a long time, but consider this: building a business that’s attractive to a buyer isn’t just about making a quick sale. It’s about developing robust systems, reducing reliance on the owner, growing profits, and demonstrating future potential.

Early planning allows you to gradually implement these improvements without disrupting the business. It also gives you time to test your strategy, fix blind spots, and prepare your team for a smooth transition.

But here’s the good news: it’s never too early or too late to start. If you begin early, you’ll create a business that’s always exit-ready. That means your business is more resilient, more attractive to investors or buyers, and more enjoyable to run. Even if you don’t plan to sell soon, having an exit-ready business puts you in a stronger position.

What If You’re Closer to Exit Than You Thought?

For business owners worried that they’ve left it too late, think of it like preparing your house for sale on short notice. You may not have time for a full renovation, but there are still quick wins that can improve the sale price. A bit of decluttering, some fresh paint, or cleaning up the yard can make a big difference in a buyer’s perception.

The same principle applies to your business.

Even with limited time, there are focused actions you can take to enhance your business’s value in the eyes of a potential buyer. For example:

• Cleaning up your financial records and ensuring they’re easy to interpret.
• Organising key operational documents.
• Tidying up customer contracts and supplier agreements.
• Delegating more responsibility to your management team.

While these changes may not replace the full benefits of a long-term strategic succession plan, they do make a difference. A well-presented business, even if it isn’t perfect, is more appealing than one that looks messy or disorganised.

Start Where You Are

Whether you’ve got ten years or ten months before you’re ready to exit, the most important step is to start. Having an adviser by your side can help you focus your efforts, avoid costly mistakes, and ultimately ensure that when the time comes, you’re ready.

The best exits are planned, not rushed. And the earlier you start, the more options you’ll have when it matters most.