Okay so you've worked years and years to build your business.  Your goodwill is invaluable, you have a large "book of business", leads & referrals flowing in, and a great reputation in your community. 

But eventually you have to retire.  It's time to stop working 50-60 hours per week and get out to see the world.  So you start thinking about:

• Who's going to take good care of your loyal, lifelong clients?
• Can you receive any income from the business you've built?
• How long do you keep your files?
• Should you get rid of equipment & electronics?

Now what?  Well if you're at the point of retirement, and you're just starting to think about this.... it's too late to plan.  Start your Exit Strategy at the very beginning.  It should be at the top of your mind at all times when you start your business, when you write your business plan, and as you grow your business over the years. 

Here's a few common exit strategies:  some are graceful, some happen by default (lack of planning):

•(1)  Sell your Business as an Entity

This includes tangible things, like equipment & furniture.  It also includes the intangibles, like your customer accounts and the goodwill you've built over the years.  How to value a business?  Check a Business Valuation book.  Or use the rule of thumb:  The business is worth 5 times its annual profit.  Also you should provide free training to your business buyer.  Consider hiring a professional business broker!

•(2)  Sell your Assets Individually

Often the most valuable thing in the real estate industry is our sphere of influence:  Our clients, and especially those loyal repeat clients:  your Book of Business.  If you have Contracts, those are valuable also.  You'll have to sell or donation Equipment.   

•(3)  Pass on to Successor/Heir

Have you been grooming a successor?  For this option, you must have plan in place first.  There are many great options to pass on your business the way YOU want, but you first need to consult your Estate Planning Attorney, Business Attorney, and Accountant or CPA.  This will help you make the best legal decisions, and to minimize any taxes due for the heir. 

•(4)  Dissolve the Business

You can always just close up shop.  Hang up the "Out of Business" sign.  But if you've worked so hard to acquire loyal clients, it's tough to just dump them on a whim like this.

•(5)  Declare Bankruptcy

Not a graceful way to go.  But hopefully you've planned ahead enough and run your business on a lean cash business model, so you won't have to resort to this.  If you have liens against your business, or if you have personal liens and your business entity is not protected from them (LLC etc.), your creditors (or predators) may be able to seize your assets and stop your business.  Think:  IRS

•(6)  Death Inheritance

Tsk, tsk, you should have planned better!!  This option is what will happen if you don't do any estate planning and happen to die before you can retire.  It's usually a big, huge, giant mess for your heirs (not to mention those precious clients).

Today I'd like to introduce you to My Green Parachute.

If you're a retired or an inactive agent, how would you like ensure that a great agent is servicing your previous clients?  And ensure that you'll continue to receive passive income from client referrals, for the rest of your life?

If you're an active agent, how would you like to partner with a retired agent who already has a book of business they can refer to you?  I bet you'd be happy to pay the retired agent a referral fee for his great clients, wouldn't you!

Contact me today to find out more about this proprietary system and put it to work for YOU!

Excerpted from my forthcoming book, "Virtual Office Guide for Business Professionals: Work & Prosper from Home"

Regina P. Brown
Broker, Realtor®, e-Pro
Author of eBook "Stop Foreclosure Fast: Solutions to Save your House"
Author of forthcoming book, "Virtual Office Guide for Business Professionals:  Work & Profit from Home"
Join my NEW group for professionals who work from their home office at http://activerain.com/groups/virtualoffice

 Text copyright © 2008 R.P. Brown, All Rights Reserved