Business Point

There are several primary exit options available to most entrepreneurs who are ready to leave their business. The individual appeal of each option may vary according to your operation's size, level of profitability, urgency of the exit, and other assorted trading and personal reasons for exiting.

You might consider:

• Passing the business onto family members who share your passion and vision for the business. This may take the form of a buy-out or inheritance.
• Taking the time to find a friendly buyer who, like you, wants the best for the business and is likely to preserve it in a similar form.
• Selling to a competitor, or anyone who shows you the money. You hand over the keys and don't look back.
• Liquidation – pay off your creditors and other investors, sell any assets, close the doors and walk away to perhaps start something new.

The main financial advice many small businesses require when considering exiting relates to the tax implications associated with selling or closing their businesses. This advice may involve separating business and property assets to facilitate the transfer of trading businesses.

Who to tell

When you sell, or even wind up a business, you have obligations to tell certain bodies of the change in status of your business. Depending on the industry in which you have operated, there may be a range of government departments, agencies and organisations that need to know your plans:

• Australian Taxation Office
• Your local council
• Regulatory bodies
• Licensing agencies
• Industry associations
• Landlord
• Bank manager
• Accountant
• Solicitor

Remember, it is good business practice to also tell people you do regular trade with and those with whom you have built up relationships over the years. This includes your customers, suppliers, business associates and advisors, and network contacts.

Before committing to any specific method of exit from your business, take advantage of wise counsel from trusted advisors and business professionals such as your solicitor, accountant and personal and business mentors.

For further, in-depth information on this subject, visit Business.gov.au

Hard copies of any “How to” business guides can be attained by contacting Business Point.

Phone 1800 440 026 or email businesspoint@development.tas.gov.au