Have you developed a business exit strategy?

QUESTION: I am thinking about selling my small business. Can you offer any tips on how to start the process?
ANSWER: Most entrepreneurs spend an enormous amount of time planning the start of their business, planning their products and services, and developing a marketing plan.
However, few give any thought to how and when they want to exit their business. Crafting an exit strategy is something every business owner should start thinking about five to 10 years prior to the sale.
There are several options to consider. You can slowly downsize, liquidate inventory and withdraw as much cash as possible over a period of several years. This method usually entails letting good employees go, and that can be a tough decision.
You can sell to a friendly competitor whose methods of operation and clientele are similar to yours. If it’s a competitor, will they retain your employees? You can also begin conversations with trusted employees who have expressed an interest and begin to turn over to them the day-to-day operations in a measured way. This will allow you to assess if they have what it takes to manage the business.
In both instances, the potential buyers are familiar with the operation and have a good sense of its worth and growth potential.
A typical buyout usually entails a third-party appraisal of the business assets, customer base and good will. Often, the seller requires a cash down payment and takes a note for the balance, payable over time, with interest. All-cash deals are rare and usually result in a generous discount to the buyer.
If yours is a service business with few hard assets, the buyer will need to do some research to locate a lender who is familiar with the type of operation and how to value its customer base, which is primarily based on repeat business and attrition.
If yours is a family business, there are many issues to sort out well in advance. Are your children capable of taking over the reins? If more than one, which sibling will be CEO and make financial decisions? What will be their percentage of ownership and the responsibilities of each? And what about the child who is not working for the company? Is he or she entitled to some ownership, or will you give them other assets?
The sooner you begin the process, the better the end result will be. It’s essential to have professional guidance from an attorney as you navigate through this complex process. They can help clarify sale terms, secure fair dealings between the parties, address potential tax implications of the purchase and ensure legal rights are maintained throughout.
Lastly, a reliable accountant is a must-have for any business sale. They can set up the necessary accounts, line out your financials and help prevent future tax issues while safeguarding you from potential buyer disputes after closing.
Business openings and closings in Richmond area
Barnes & Noble

Barnes & Noble will be closing its 9850 Brook Road store in Glen Allen. Its last day of operation will be Sunday, June 23. Read the story.
Txtur

Txtur, a Roanoke-based furniture company, has opened a showroom at 604 Hull St. in Richmond’s Manchester neighborhood. Read the story.
Marshalls

The Marshalls store in Midlothian is moving from 9748 Midlothian Turnpike to Westchester Commons at 109 Perimeter Dr.
A new Marshalls is also headed to 5730 Hopkins Road in the Meadowbrook Plaza center in North Chesterfield, while the Marshalls at 4020 Meadowdale Blvd. in Chesterfield will be closing. It will be replaced by a new Planet Fitness.
Planet Fitness

Planet Fitness is set to open a new location at Meadowdale Plaza, 3950-4126 Meadowdale Blvd., in Chesterfield.
Shoreline Seafood Market

Shoreline Seafood Market is now open at 10614 Patterson Ave. in Canterbury Shopping Center.
From David Whitby, the former owner of Yellow Umbrella seafood, Shoreline is a “traditional seafood market…reimagined” where visitors can shop the rotating fresh fish case, pull up a chair at the dine-in counter for lunch or shop the market for wine, tinned fish, and gourmet groceries. Read the story.
Gearharts Fine Chocolates
Gearharts Fine Chocolates recently opened a new dessert cafe at 11331 W. Broad St.
BLVCK WAX

A new black owned luxury body waxing and beauty brand located at 400 Southlake Blvd, Suite J2, empowering women to feel confident and beautiful in their own skin.
Midtown Yoga

Midtown Yoga is making their Virginia debut with a new studio in Carytown. Located at 3526 W Cary St. Suite A140, Midtown Yoga provides a welcoming and dynamic workout experience for both the yoga-curious and the yoga-devoted.
Scenthound

Scenthound, a wellness-focused dog care center, opened in Short Pump at 10921 W. Broad St., Suite B.
Ruby

Ruby, located at 3030 W. Cary St., specializes in good quality, casual clothing, is closing in June after nine years in business. It is a sister shop to The Phoenix.
Yellow Umbrella Libbie Mill

Yellow Umbrella has opened a second location in Libbie Mill. It took over the space that was occupied by The Stables Market at 5001 Libbie Mill E. Blvd, Suite 135. The new spot offers most of the same provisions as the Patterson Avenue flagship, including prepared foods, grab-and-go lunch offerings, baked goods, pantry staples, charcuterie, wine and beer. It also has hot lunch offerings with house-made soups and made-to-order paninis. Read the story.
Odd Bird

Odd Bird, a new home goods shop, is now open in Jackson Ward at 320 Brook Road.
UGK@Hull

The Underground Kitchen has opened a boutique space featuring a curated selection of home entertaining items and foods such as rare wines, artisanal gourmet bites and vintage glassware. Check out its Instagram at @ugkhullstreet. 205 Hull St.
Amazon fulfillment center in Henrico

In Henrico County, Gov. Glenn Youngkin and Amazon officials cut a ribbon for Amazon’s new fulfillment center. Youngkin called it “the largest building I’ve ever seen in my life.”
The gigantic, 5-story building contains 2.7 million square feet of space — enough to fit 46 football fields.
At any given time, it stores about 20 million consumer items, such as diapers, books and batteries, ready to ship at a moment’s notice. Read the story.
Coca-Cola bottling plant in Henrico

Coca-Cola has spent $50 million to expand its manufacturing and warehouse facility in eastern Henrico County, as the Richmond market grows and demand for soda continues. Read the story.
Richmond’s new baseball stadium

Richmond’s planned baseball stadium is to include a beer garden, family zone and party area.
The Henrico Sports & Events Center

The Henrico Sports & Events Center, the county’s sprawling multipurpose building at the site of the former Virginia Center Commons mall, has opened to the public.
The 185,000-square-foot facility cost $50 million and can hold up to 4,500 guests in retractable seats. A flexible space, it has room for 12 basketball courts or 24 volleyball courts. It will host concerts, business events and more. Read the story.
Shades of Moss

Shades of Moss Plant + Design is a new plant, record and tea shop from Charlotte, North Carolina now open in Carytown at 2128 W. Cary St.
Padel Plant

The iconic Haxall hydroelectric plant located along the downtown Riverfront Canal Walk on the banks of the James River will soon be an indoor racket sports venue called the Padel Plant, complete with padel and pickleball courts as well as a food-and-beverage concept.
The venue will offer memberships with priority access, but also will be open to the public. It aims to open later this summer. Read the story.
Jean Theory

Jean Theory, a women’s clothing boutique at 5708 Patterson Ave. carries more than 70 styles of premium denim from top designers. Read the story.
Shenandoah Mansions

The Shenandoah building, located at 501 N. Allen Ave., is currently being renovated into a boutique hotel and will be the Fan’s first such hotel when it opens in the fall of 2024.
HomeGoods

HomeGoods has opened in the Willow Place shopping center at 5478 W. Broad St., across from Target and Barnes & Noble. Read the story.
Fink’s Flagship store at Short Pump

A rendering of Fink’s Jewelers’ planned flagship location. It’s expected to be finished this year at the corner of N. Gayton Road and W. Broad Street in Henrico. Read the story.
Painted Tree Boutiques

Painted Tree Boutiques, a home décor, gifts and boutique clothing store, is headed to the Westpark Shopping Center at 9819 W. Broad St. in western Henrico County. Read the story.
RVA Hot Wheelz

Identical twin sisters Dashia (left) and Destiny Oliver, 24, launched RVA Hot Wheelz which rents Slingshot vehicles at 3107 Old Hilliard Road in Henrico.
Read the story.
Bangers & Dinks

Bangers & Dinks, which gets its name from two pickleball terms, is an indoor pickleball court at 1516 Koger Center Blvd. in Chesterfield County.
Whistle Express car wash

Whistle Express Car Wash is now open in Powhatan at 1880 Stavemill Crossing Lane. Whistle Express purchased the 2-acre plot in 2021 for about $1 million. Near Route 60, the property is diagonal from Walmart.
In Hanover, a location is open at 7419 Pole Green Road. The parcel is a 2-acre plot bought by the chain that is adjacent to a Sheetz gas station and convenience store. Property records do not list a sale price.
The Midlothian Whistle Express is located at 10300 Midlothian Turnpike, an almost 1-acre plot bought by the company for $1.4 million in 2021 at the intersection of Midlothian Turnpike and Sturbridge Drive.
Popshelf

Popshelf is now open at the Shops at Stratford Hills at 7101 Forest Hill Ave.
Take a look at these restaurants that closed in the Richmond area.
Gray Poehler is a volunteer with the Richmond Chapter of SCORE, Counselors to America’s Small Business. To ask a question or request free and confidential business counseling, go to Richmond.score.org/mentors. Learn more about SCORE’s workshops on the website or by calling (800) 634-0245.
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