Whose plan would you rather follow, yours or someone else’s?

Many of you may be concerned about the impact on your personal standard of living due to the spending cuts, rising price of energy, adequacy of your pension arrangements and possibly the cost of funding university fees. Your concerns are understandable but the important thing is sitting down to assess your options and make a plan.

This approach is no different in business.

Successful entrepreneurs will typically have a very clear idea about what they are seeking to achieve and by when.  Many have an exit plan in mind from very early on and they organise their personal and business affairs accordingly. Their businesses are not just “groomed” but developed so as to increase the likelihood of attracting a particular type of purchaser.  Sacrifices are made along the way however they are done so and borne in order to secure that longer term goal.  

Others take a more philosophical approach, putting off any serious thought as to the future and who likely purchasers may be and what might interest them until another day, believing that all will come good and they can then sell up and enjoy a comfortable retirement.  Some achieve this, many do not.
No one has a crystal ball to predict the future. However, with a clear plan decisions can be taken that strengthen your hand. Think carefully about when you want to sell up and retire; is that realistic given where your business will be in its development?

Also, think what would happen if you were to suddenly die (a morbid thought but it happens); ensure that you keep your affairs up to date (and not in your head) and that you have a circle of people around you who you can trust to manage your affairs and run your business in the interim. An up to date will is so important as too are shareholder agreements and appropriate insurance.

Bear in mind the old adage “if you do not have a plan, the chances are that you will end up following some else’s, and it is bound to be best for them, not you”

To discuss this article in more detail or for advice, call David Clift on 0161 245 1000 or email dclift@clbcoopers.co.uk