Accounting Hacks and Strategies for People Who Don't Like Maths

How to Develop an Exit Plan for Your Small Business

The vast majority of independent businesses across Australia are small and have been set up by an enterprising entrepreneur, usually as a "lifestyle" operation. This means that they are relatively compact in nature and were never designed to become particularly large or cumbersome. In fact, they were set up so that the founder could maintain control and, eventually, reap the rewards of his or her efforts. Of course, sometimes these organisations will become particularly successful and may still grow to a certain size. When this happens, they can tend to take on a life of their own. Why is it still important for the founder to stick to their original plans and focus on the exit strategy as well?

The Endgame

Most people set up their own business to make life better for them and their dependents. They may be looking for a certain amount of freedom in life at some time in the future. Assuming that the business has indeed been successful and is a valid, ongoing concern, then they must stay true to the original intent and put it up for sale at the appropriate time.

What's Your Exit Strategy?

Unfortunately, many of these entrepreneurs do not have an exit strategy in place and simply don't know what to do in order to move in that direction. However, it's not too difficult once you have a plan.

Surviving without You

To begin with, the business must be able to survive without its founder. In other words, it should have a competent management team in place that can successfully run the business without the main man or woman. This is by far the most important rule, as even the best-looking business may not be worth anything if its success is entirely linked to the outgoing seller.

Good Prospects

You've also got to make sure that the business is saleable and that you don't have too many eggs in one basket. In other words, do you have excellent relations with your customers and have a good spread, without a focus on one individual organisation? This will help to appease any potential buyers, who may be worried about longevity.

Well-Kept Books

Furthermore, make sure that all your financial affairs are in order and that your books are well kept. You need to maintain management accounts on a month by month basis before you put the business onto the market. This will show the prospective buyer exactly where you stand when they access the profit and loss account and balance sheet.

Team of Experts

If you're serious about moving on, you can build a team of experts to help you. You should certainly get your accountant involved at the earliest opportunity before advertising your availability because he or she will be vital throughout this process. 

About Me

Accounting Hacks and Strategies for People Who Don't Like Maths

Hi, my name is Julie. About a decade ago, I started my own business. I wanted the chance to work for myself, doing something I love, but I almost didn't try because I was so intimidated by the idea of keeping my own books. I have always disliked maths, and it is one of my weaknesses. However, with the help of an accountant who helped me to get set up and who helps me with my taxes every year, I was able to track everything and do a lot of my accounting on my own. If you don't like maths, don't worry – you can still start your own business. Take a look at these hacks and ideas. I hope you find my blog helpful.

Latest Posts

How to Develop an Exit Plan for Your Small Business
27 November 2018

The vast majority of independent businesses across

4 Tips To Prevent Disruption of Business Through Unnecessary Tax Audits
26 December 2017

Although the authorities have the discretion of co

It's Tax Audit Time. Should You Be Worried?
22 August 2017

If you pay attention to the news, you will have he

Mistakes to Avoid When Hiring a CPA in your Small Business
10 April 2017

Accounting involves organized and systematic ways

What to Look for When Choosing an Accountant
12 October 2016

When you're setting up a small business, you've go