It's an uncomfortable subject no one really likes to talk about, but we all know we need to - the ultimate exit strategy - your Will. When I started my business, I had a chat with my (adult) kids. I've lined everything up, if something happens to me, so it'll be easy for them. At the same time, if I decide to dissolve (for whatever reason) or sell (money talks!), gift (that would be cool!), I'm ready.
There are numerous sites for doing your own simple Will fairly cheap so you don't have to use a lawyer at all. I didn't. My only advice is SOONER rather than LATER. Then, update it every year. I always update mine in January (it's stored online with the site I used so it's very easy).
Another hint while we're on the subject - Virtual Lockboxes. The state of Nevada Secretary of State maintines a Living Will Lockbox - for free. It's an electronic storage system accessible by password to particpants and authorized health care providers and facilities. Set it up, and never have to worry that what you want will be done, and no one has the burden of making the decision for you.
Serious stuff - but reality.
Great point to bring up, Sundi! Thanks.
June

Great thread. My lecturer at uni mentioned the exit plan as well. I must look into this further.

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Heike Miller
www.heikemiller.com

This thread has given me lots to think about in regards to having an Exit Strategy. For a VA / Bookkeeping practice, would it even be possible to consider selling this type of business when you are the business?

Locally I've never seen bookkeeping type businesses for sale. Which makes me think the only option for me would be to find a new bookkeeper for my clients. Thanks sharing this important topic.

Sylvia

Very interesting and not something you think about but very worthwhile considering. How often do our lives take an unexpected turn... Thank you for that

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http://panachesolutionsltd.co.uk/home.htm

How would you sell a VA business? Gifting is definitely nice if you don't really care about the money but think about all of the time, energy and money that you've invested to create a solid business. Those clients are, in a sense, just like inventory in a retail location. They're worth money. Of course, clients are people too and have choices so it's a little bit trickier. Would you find the best VA to meet their continuing needs and then, once both VA and client agree on the new partnership, you require a heftier "finders fee" than normal, say the first months revenue from that client or at least 50 or 60 percent of it? To me, if I was given the opportunity to pick up a client from another VA who has a very good standing, that's a small price to pay for the privilege of working with that client and the increase in my own revenue. If you want to compare the client to inventory again, most retail locations mark up their items 40 to 60 percent so that's not unreasonable IMO.

As an example, let's say I had a retainer client that was netting me $1,530 every month and I "sold" this client to another VA for 50% of the first month's invoice. I would get $765 and the new VA would keep $765. But, if the partnership worked out and the client stayed around for another year (hopefully more, of course). The new VA would have an additional income of $17,595.

I'm not saying that I wouldn't consider "gifting", of course, I'm just trying to figure out the best way to go about "selling" my business if it came down to that.

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Stephanie
New VA in the research phase

I'm all too familiar with "exit strategies". I've been a part of compiling information the due diligence when the last two companies I worked for were sold (I supported the owners of both). Thank you for bringing to my attention the fact that, even though my business is small, I do need an exit strategy.

I haven't even started yet, so I definitely didn't even think of an exit strategy. This definitely sounds like the perfect time to think about it.

Thanks for the tips!

Holly

Wow...what great information. This is very interesting. I am getting ready to start my business and never gave a thought about how to go about ending it in the future. It does make perfect sense though!

I believe I saw links for exit strategies on the small business association, but like everyone else I didn't check it out, especially since I was more interested in the start up stuff. If it's not there, then go to www.ohio.gov as they have a business gateway. Alot of the info is about Ohio, but I think they also mentioned exit strategies

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Serita Diana, the List 2 Close Assistant
REVA Academy

Wow this was definitly something that I had not thought about. But I will be sure to research and add my exit plan to my business plan.

Thanks,
Tanicha
TLC Virtual Office

One of the greatest things I have ever done was create a support group for my business including legal and financial support which has helped me get from bump to bump. As for the exit strategy I feel that it is a great idea to have one and a must for any size business. I have a backup business of running an educational site. I use this site to generate funds so that if there is a month that is slow with my VA business I have money to sustain my living arrangements. I think that we should all share our plans so that others can get ideas.

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Jacob Kruse, VA
HavocBlast Education Services,

Hi Sundi:

I have heard different ideas about an "exit".

You can sell or refer the business to either employees or family. In many cases you should get money from them over a period of time. This would help your retirement.

Then you can also sell to an outsider but I think that is more likely to fail. The outsider would not necessarily realize what he/she was getting and might not be equipped to handle it.

Just some thoughs,

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Penelope Myer
Penelope and Partners