Planning ahead gives you control. By making realistic, simple plans, you take control of your business and your future. There's a lot of truth in the old saying: "failing to plan is planning to fail." After more than 25 years selling and valuing Australian businesses, I'm still surprised by how many owners run excellent businesses without a business plan, a marketing plan, or an exit strategy. These three documents are what separate owners who leave on their own terms, at the best possible price, from owners who are forced to sell in a hurry and accept whatever the market offers. The Three Plans Every Business Owner Needs 1. A Business Plan A business plan gives your business structure, goals and direction. It doesn't need to be complicated. It needs to be realistic, written down, and reviewed regularly. It's the document that tells you (and your team) where the business is going and how it will get there. 2. A Marketing Plan A marketing plan is a tool that can be handed to others in your absence and, importantly, handed to the new owner when you eventually sell. A documented, proven marketing plan adds real value to your business at sale time , because the buyer is acquiring your knowledge of what works, not just your assets. Businesses that can run without the owner in the room consistently attract stronger offers. 3. An Exit Strategy (Succession Plan) An exit strategy, sometimes called a succession plan, is the most neglected of the three, and the most expensive to ignore. Every business will change hands eventually. An exit strategy lets you leave when you are ready, on your terms , not when illness, burnout, partnership disputes or market conditions force your hand. A well-planned exit typically delivers three things: the best possible sale price, a reduced tax liability, and maximum yield from the business while you still own it. What Happens Without an Exit Strategy? In my experience as a business broker and valuer, owners without an exit strategy usually share one problem: they have no idea what their business is really worth. Many discover, far too late, that the business won't sell for the price they had assumed, or that years of decisions have quietly eroded its value. That discovery leads to disappointment, financial stress, and in some cases a retirement that has to be postponed. It doesn't have to happen that way. A professional business valuation early in the process tells you exactly where you stand, and gives you time to fix the gaps between what the business is worth today and what you need it to be worth when you sell. How to Create a Business Exit Plan: 6 Steps Step 1: Get a professional valuation. Have the business valued by a qualified, registered business valuer. Not a guess, not an industry rumour, but an actual valuation based on real market data. Step 2: Calculate your current net position. Work out the current net worth of the business and what you would actually walk away with after debts, costs and tax. Step 3: Set your exit date and target figure. Plan dates and timeframes for your exit, and the projected net realisation you need from the sale. Step 4: Formulate the plan. Document how you'll close the gap: improving profitability, systemising operations, reducing owner-dependence, cleaning up the financials. Step 5: Review progress regularly. Check performance against the plan at least annually. An exit plan is a working document, not a drawer document. Step 6: Start early. The best time to start exit planning is the day you start (or buy) the business. The second-best time is now. Frequently Asked Questions What is a business exit strategy? A business exit strategy is a documented plan for how and when a business owner will leave the business, whether by sale, succession to family or management, or merger, and how they will maximise the price, minimise tax, and protect the business's value in the process. When should I start planning my business exit? Ideally from the day you start or buy the business. Practically, you should begin serious exit planning at least three to five years before you intend to sell. That gives you time to lift profitability, systemise the business, and present clean financial records to buyers. How do I find out what my business is worth? Engage a qualified business valuer. As an AIBB Registered Business Valuer, I base valuations on real settled-sale market data, not rules of thumb. Knowing the true value early is the foundation of every good exit plan. Learn more about business valuations here . Does an exit strategy add value even if I'm not selling soon? Yes. The work involved, such as documenting systems, reducing owner-dependence, and improving margins, makes the business more profitable and easier to run today, while making it more valuable and more saleable whenever you do decide to exit. Take the First Step Remember: planning ahead gives you control and direction. Whether you're thinking about selling your business in the next twelve months or simply want to know where you stand, the first step is the same: find out what your business is really worth. I've completed more than 5,000 business sales since 1999 and have been valuing Australian businesses since 2003, including as a court-appointed expert witness. If you'd like a confidential conversation about your exit plan or a business valuation , get in touch here .  Bruce Coudrey is the founder and Principal of Benchmark Business Sales & Valuations, one of Australia's largest business brokerages. He is a Certified Practicing Business Broker, AIBB Registered Business Valuer, and recipient of the AIBB President's Medal.

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