How and When to Say Goodbye to Your Accounting Business

Source: Accounting Today

In this article, August Aquila outlines a few critical steps to consider if it's time for you to consider an exit strategy from your accounting business, and how to plan for an appropriately timed exit. Aquila suggests that it's time for you to think about moving on if two or more of the following apply to you.

1. You don't enjoy pursuing more clients and business opportunities.
2. You no longer look forward to your daily work.
3. You wouldn't be willing to make major personal financial investments to expand your business.
4. You primarily find yourself talking negatively about the business, coworkers and clients.

As for how to develop a succession plan, following are Aquila's recommendations:

1. Decide if you want to let someone buy your business, join your firm with another, or just let your business slowly and intentionally diminish.
2. Come up with a financial plan for your own retirement.
3. Choose several individuals – friends, family, colleagues, other professionals – who can help you make the best decisions about how to move forward.
4. Find out how much your firm is worth.
5. Take the first step toward putting your plans into action.
6. If someone will be taking your place, start equipping that person with the knowledge, resources and connections needed to fill your role.
7. Take action before circumstances force you to do something.

For the complete article, read “No exit? Seven steps for confronting the succession plan challenge.”

From Accounting Today, August 1, 2011, SourceMedia Inc., One State Street Plaza, 27th Floor, New York, NY 10004, 800-221-1809.