For most business owners, the goal is business growth, but what happens when it’s time to step away? Whether you’re planning to retire, pivot, or cash out, having a clear exit strategy is crucial.
At Profit Cash Growth, we work with ambitious business owners to help them understand their profit & loss, manage their cash flow, and make informed financial decisions. Recently, we worked with a client, let’s call him James, who runs a £3M turnover business and was ready to exit.
James had three options for his exit, each with different risks, rewards, and financial implications.
Option 1: Close the Business and Walk Away
Closing the business is the simplest option. It involves selling assets, paying off creditors and employees, and distributing the remaining funds after taxes.
The total cash payout after all expenses and taxes would be around £500K. While this sounds reasonable, it only provides about seven years of income based on John's current lifestyle.
Ease of Execution: 9/10 – Quick and straightforward
Financial Reward: 3/10 – The lowest return and leaves money on the table
Closing down is only a good option for those who want a fast exit and don’t need long-term financial security.
Option 2: Keep the Business and Step Back
Instead of selling, James could put a management structure in place, allowing him to take a backseat while the business continues to generate profits. This would require hiring a Finance Manager and Managing Director to take over day-to-day operations.
With the right team in place, James could still draw £100K–£500K per year from the business while stepping away from the operational side.
The challenge is recruiting the right people, ensuring they can drive profit, and putting robust management accounts in place to track performance.
Ease of Execution: 6/10 – Requires planning but is manageable
Financial Reward: 6.5/10 – Provides a stable income and long-term security
This option works well for business owners who want to maintain an income while reducing their involvement.
Option 3: Sell the Business for Maximum Payout
Selling the business is the most appealing option, but also the hardest. Many business owners assume they can sell when they are ready, but most businesses are not in a sellable state.
To attract buyers, James’s business would need:
A strong leadership team that can run the business without him
A clear track record of cash flow management
A finance director who ensures financial stability and scalable growth
Right now, John's business lacks a sales process, structured financial reporting, and a team that can run things without him. Without making these changes, the business is unlikely to sell at a good price if at all.
If he invests in the right improvements, James could sell for £2M–£3M within a few years. However, this requires time, effort, and the right strategy.
Ease of Execution: 3/10 – High risk and requires a long-term plan
Financial Reward: 10/10 – The biggest potential payout
The Key Lesson: Plan Your Exit Early
Many business owners wait too long to think about their exit strategy. The best time to plan is years before you’re ready to leave.
A business that is sellable or can run without the owner isn’t built overnight. It requires:
Accurate management accounts to track financial performance
A proactive accountant who can optimise cash flow and tax efficiency
The right finance team to ensure the business remains profitable
A business model that isn’t dependent on the owner’s involvement
If you’re considering your exit—whether it’s in a year or a decade, start planning now.
Book a free consultation with Profit Cash Growth, and we’ll help you structure your finances to maximise the value of your business.
📩 Get in touch today: www.profitcashgrowth.com
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