As a business owner, you are no doubt a planner. You plan for the start of your business. You plan for each expansion of your business. You plan when you are going to hire more staff or buy new equipment. But have you planned your exit strategy?
An exit strategy is a means of leaving one’s current situation, either after a predetermined objective has been achieved, justifying premises or decision makers for any given operational planning changed substantially, or as a strategy to mitigate imminent or possible failure.
While you are at the top of your game in your business, you probably don’t think about selling your business; retiring or what will happen to your business in the event of a catastrophic injury or death. Just as in your personal life, you should make plans for your business. A good place to start, if you have a Limited Liability Company is to include contingencies in your Operating Agreement for a sale of your interest in the business or the business as a whole. With any type of business with multiple owners, you should consider a Buy-Sell Agreement.
Even if you don’t have partners, shareholders or members, you should create a succession plan. A strong succession plan will be a road-map for key employees to follow to ensure that the business you have worked so hard to build will survive into the future.