Original article shared by Partner, Ken Knapik
6. Building it back up is a long road, make sure you know how it ends.
It has been a difficult recession for most business owners. With the glimmer of an economic recovery, now is the time to decide the ultimate direction for your business to make the most of this upturn. Building your company back up is going to take a lot of work, so make sure you are working in the right direction. If you align the growth of your business with your exit option, you’ll have a much smoother and more successful transition.
7. Banks are back, but maybe not forever.
The Small Business Jobs Act of 2010 allowed for the creation of a $30 billion fund run by the Treasury Department that is being used to deliver capital to banks with less than $10 billion in assets. The idea is that community banks do the lion’s share of lending to small businesses, and pumping capital into them will get money in the hands of small business.* This financial support is something business owners can take advantage of now, but no one knows how long it will last.
8. Capital gains tax rates are frozen for 2 more years.
The recently extended tax cuts have maintained the current maximum tax rate for qualified long-term capital gains and topping out at 15% through December 31, 2012. Without the extension, capital gains were slated to rise to a high of 20% – something that may now occur in 2012**.
9. Life plans have advanced.
Recessions force us to consider our personal priorities. Have you considered your personal goals? What are your conclusions? Is there a life beyond a business? Perhaps you are ready now, more than ever before, to begin enjoying the fruits of your labor in your business by transitioning your focus to your personal life.
10. Resolve to let business challenges be the other guy’s problem. Becoming mentally prepared to exit your business may be harder than you’d expect. Exiting a business that has been built by years of hard work and dedication can be a difficult emotional hurdle. How involved are you in the day to day operations of your business? What will you do with your time when you are no longer running the business? Make a resolution to get prepared for the next stage of your life – this will allow you to think clearly throughout the exit process so that the decisions you make are based on objective criteria instead of the subjective way in which you feel about the exit.
We hope that these ten (10) reasons got you thinking about planning your exit in 2011. And remember that a proactive approach to exit planning is the best approach.
* CNN money.com, September 16, 2010, Catherine Clifford ** Wall Street Journal, December 17, 2010, Janet Hook & John McKinnon