Exit Plans for a Small Business…Whether Successful or Failing
In response to Jean Murray’s former post on this blog, Do You Have an Exit Plan?, a reader gave some suggestions.
Not having an exit plan is like jumping from an airplane without a parachute (usually not a good outcome). There are specific things that owners can do to maximize the value of their business and reduce risks, and taxes when they exit. But it requires planning ahead. Owners who have an exit plan will always have a better landing than those who do not plan.
It is a fact that every owner will transition out of their business in one of five ways; 1) sell to a 3rd party 2) transfer the business to insiders (family or key employees) 3) die 4) become disabled 5) liquidate (out of business).
Hire a professional to help create your plan and exucute the plan for a better outcome!!
Having an exit plan doesn’t mean you’re courting failure with your business. You expect success and often a number of incidents and situations occur that cause you to exit or discontinue. Even if you continue your business until death, you need to have a strategy for passing it on or selling it.
What exit plan do you have? What plans do you have for passing it on when you can no longer continue? What exit plan do you have if your business has become a dinosaur?
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