A business exit strategy is a plan for what will happen when you want to leave your business.
A lot of people think of an exit strategy as a plan to guard against disaster or something that has to be carried out right away after its conception.
But this usually isn’t the case. Instead, it’s a plan you put in place to work out how you’re going to enter the new chapter of your life without hindrance. It’s your way of ensuring that the future of the business is guaranteed even without you, if that’s what you want.
While a lot of exit planning is to do with how you will leave the business, you’ll also want to consider other factors that are involved in the process.
For instance, you need to think about whether you want to profit from your exit by making some money. If you do, is this enough of a reason to go for one strategy over another?
You also need to consider what will happen to the business after you leave, whether a family member keeps your legacy alive or another business acquires yours.
Then there’s the length of time your exit will take. People usually like to have transition periods, but you need to think about that carefully.