As a BC business owner you will have to consider leaving your company at some point down the line. Whether you own a large enterprise or a very small business in BC, an exit strategy is one of the things that you need to make a decision about. You will need to question yourself about getting the cash that you deserve from the business when you are ready to leave. Planning this process strategically will help you to have a better outcome. When planning your exit there are a few options that are available. Here are some of them:
Shut the Business Down
One option is to just close the doors for the business and call it quits. This is a choice that we see many BC business owners taking when they are ready to leave their business. This is usually not the aim of a business owner when they start their business and it is one of the hardest decisions to make. However the simplicity of the process might make it ideal for some business owners.
In cases like this, the owners would have used the assets for the company to close any outstanding payments owed and pay out the parties who have shares in the business. The best thing about this technique is that you get to avoid negotiations, and you don’t have to be worrying about the transition from yourself to the new owner. However this is the option that can be the least desirable because it you will simply be letting go of a likely valuable resource that is full of potential.
Selling To Someone in the Family
Some business owners have the option of selling the business to a member of their family to have them run it. This is a good choice for many because the family members have a closer connection with you and many owners trust their family members more than they do outsiders. With this method you will be able to ensure that the family still gets to earn from the business even after you leave. However you want to be careful when deciding to use this option because sometimes transactions such as this might lead to conflict within the family. Furthermore a family member, though closer to you might not be suitable to run a business when compared to an outside buyer.
Selling the Business to an Employee
One other option is to sell the business to someone on the staff. This is somewhat similar to selling to a family member being that the person is someone who is close to the seller and can be trusted by them. This is also a lot simpler than selling to an outside source. Usually you sell the company shares at a reduced cost and provides other benefits for the employee. This option can only be possible if there is an employee who is willing to take the business ownership role. Furthermore, if an employee steps up to take the role, you need to ensure that this person is suitable to carry out the role effectively.
Selling the Business to an Associate
If the business has multiple owners you can also consider handing over the shares and the operation responsibilities to a co-owner for the business. This would be a good option considering that a co-owner would have a sufficient understanding of the business operations and so they will more than likely continue to maintain its success and build on it even more. A co-owner might be the best option to put your mind at ease about the business operation.
If none of these options work then you can simply go through the process of putting your business up for sale to an outside party in anybusiness for sale BClisting. This is a long and complicated method but is one of the most ideal options out there to ensure that the business continues to operate after you have left and that you get an earning from the business sale.