When it comes to running a business, knowing how to leave your company the right way can be crucial. 

Jamar Cobb-Dennard, a business broker with Indiana Business Advisors, says creating a well-planned exit strategy is not something every business owner considers. “Many people don’t start with the end in mind.” 

Cobb-Dennard says it’s important to know how to get adequate value for your company that’s proportional to the time you spent building the business. He says the first step is considering how much you want to make from the sale. It’s important to consider if you are trying to raise enough money to retire, build a nest egg, or start a new business.  

When it comes to finding your business’s value, Cobb-Dennard says it’s not all about revenue. “Most businesses are valued by their profit, not total sales.” A business that has a million dollars in sales but only $100,000 in profit may not be worth seven figures.  

In addition, a good exit strategy should also consider the people who will run the business after you leave. Along with the proper systems and procedures, Cobb-Dennard wants business owners to think about how to leave their company in a position to succeed after they step down.   

A good exit strategy also considers customer relationships. Since most businesses rely on their customers, you want to ensure those relationships remain intact with the new owners after you leave.