What is exit planning?
The process of making the business owners get out of their business with maximum value is known as exit planning. It consists of improving a long-term plan to maximize business value. Hence, the owner can exit with the highest potential value. The process ensures the value of a business at the exit time to fund all the post-exits of the business owner.
Exit planning has begun long before the owner exit from the business. The ultimate aim is to exit at all times. If the process starts early, it can facilitate far robust planning and more comprehensive than the exit transaction on the horizon.
How to build an Exit Planning Practice?
As we know, the CPA firms have recognized traditional services are under attack from several directions. Besides to compete with the CPA firms, we have to make content with the competitors of non-CPA, low service providers, and outsourcing to lower-cost countries by penetrating at an accelerating pace. The CPA firms are succeeding in improving the value-added services for the clients to achieve their goals related to business and finance. The services can stay in a strong line of values.
Let's know some guidelines in breaking the barriers in building the practice of exit planning:
- Make a professional commitment
- Develop domain expertise
- Invest in growth opportunities
Make a professional commitment:
It takes commitment and time to build a new service line. One cannot turn off the tax practice but can turn on the fulltime practice. The transition plan includes An education plan, change in market identity, ability to see the new lens, client transition plan. You can accelerate the advancement in the area of new practice with formal training participation. There are many universities and organizations which can offer programs related to exit planning. After committing to building the practice, it has to be a new identity and no longer be marketed as a tax professional. Your firm biography, LinkedIn profile, elevator pitch, and business card must be attractive to have new exit planning.
Whenever a client's new opportunities knock your door, then you have seen them with planning professional's point of view. It's a perspective as always have and moving forward it's an opportunity. Resist to pursue temptation when there's no potential, and then you have to introduce the opportunity to others in the firm. You have to begin the relationship with the clients by examining the client's list.
Develop domain expertise:
It's a challenge to change your expertise area to the new one, while the market place is having a demand for domain experts. Suppose, if you are not afraid to get out of the comfort zone, then there's an opportunity to rejuvenate your passion and energy by adding value services. You might think of how many domain experts are there in a CPA firm?
In the case of smaller firms, the domain expertise may not be used as practical. In those scenarios, one must have to educate himself on the particular process with an exit plan advisor. Have a question raised in mind, where can we find the exit planner? The answer to that solution is to assist your clients in practising exit planning.
Invest in growth opportunities:
It's for sure that one day all the business owners will be leaving their businesses. Often many of the business owners can only exist once in their entire lifetime. As it's an emotional and overwhelming drain for the unprepared seller, that's why the business owners need an exit planning practice which is very comprehensive. If the firm develops an excellent reputation in exit planning, then the traditional services also grow. In those situations, every dollar will generate new revenue for the firm in other services.
Most of the business owners are getting a lot of benefits from the exit planning practise. Hope you have learned how to build an exit planning practice in the firms. Questions? Comment in the below section.
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Anji Velagana is the Content Strategist at Simandhar Education and has 2 years of experience in content writing and blogging. He loves pursuing excellence through writing and has a passion for technology & educational content. Contact him on LinkedIn.