Choosing your exit strategy.

Byline: SUZANNE McCREEDY

IF you're setting up a new business you'll have a clear vision of what you want to achieve from it. While it may seem like the last thing you'd need to plan for when setting up, an exit strategy can in fact be crucial in maximising the value of your company.

A clear strategy for exiting your business allows you to decide the time at which it is most appropriate to step back from your enterprise, be this by selling it or maintaining involvement in a non-executive capacity.

Carefully planning your exit from the business can help you to: Mould your business into the ideal shape for your chosen exit option, maximising the value you get from it.

Groom successors if they're coming from within the business, whether they're a family member or part of your management team.

Exit at a time of your choosing, when the business is doing well and the market conditions are advantageous.Ideally, you should include an exit strategy in your start-up business plan. It can then be reviewed and revised whenever you work on your annual business plan and budget and you can steer your business in the direction that your exit option demands.

Business Link has a helpful online guide available at www.businesslink.gov.uk/northeast where businesses can go to find out more about the exit options that exist. The guide will help companies to establish which plan best suits their circumstances, with examples of how other businesses have implemented their exit strategy. If you already manage a business and don't have an exit plan, you should think about what your preferred exit option might be and consider whether you could change the way you run your business to help you achieve it. Think about way your exit can affect the value you and other shareholders realise from the business; whether you receive a cash deal, in deferred or staged payments; the future success of the business and its products or services; whether you retain any involvement in or control of your business and your tax liabilities.

Once you have decided on the best exit strategy for your business, you will need to plan how to put this into place.

For further information about Business Link visit www.businesslink.gov.uk/northeast or call 0845 600 9 006.

Suzanne McCreedy, Business Link