How small business owners can create an
exit plan
Metro Creative Connection
Millions of people across the globe dream of owning their own business . Such dreams come true every day , and small business owners often cite freedom and autonomy as two of the most rewarding parts of owning a business .
Small business owners nearing retirement can look back with pride on the business they built . And as retirement draws closer , a successful exit plan can ensure the business keeps going in the years to come . No two businesses are the same , so an exit plan that works for one firm won ’ t necessarily work for another . But these are some general strategies that can help small business owners nearing retirement age ensure a successful transition when the time comes for them to call it a career .
— Work with a consultant . Consultants have experience in a variety of situations , including the development and implementation of exit plans . Business owners who need help finding a consultant can speak to fellow small business owners in the community or ask their financial advisor for a recommendation .
— Decide on your long-term role .
Some business owners want to remain involved after retirement , while others want to divest themselves entirely . Business owners must give ample consideration to what they want their longterm role to be . If they want to remain somewhat involved , then developing a new organizational structure , including who will have final say on important decisions , will be necessary .
— Pick and share a target date for the transition . A deadline for the transition to new leadership will ensure everyone at the company treats it seriously . Target dates can change , but the establishment of the date can motivate business owners to make the changes necessary to ensure a smooth transition . A target date gives those who will be assuming leadership roles time to reorganize staff so the business continues without missing a beat once the change at the top goes into effect . Target dates also give staff ample time to learn and prepare for new roles they may move into once the new leadership takes over .
— Welcome feedback . Soliciting feedback from those who will be affected by the exit plan increases the chances of a more successful transition once the target date arrives . This also gives owners a chance to gauge potential successors ’ interest in taking the reins . Some potential successors may prefer to stay in their current roles , and owners should not assume that everyone aspires to be head honcho .
— Make the plan known . Once the exit plan has been established and all affected parties have accepted it , business owners can make it known to the rest of the company . This helps everyone prepare for the transition , which should make things go more smoothly for owners ’ successors .
Exit plans can help small business owners step away with the confidence that the fruits of their labors will continue to be harvested for years to come .
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