Note: This blog first appeared on the NCACPA website.
It's not surprising that many new business owners devote little thought to their exit strategy. They have way too much going on today to worry about tomorrow.
Still, putting together a business succession plan as soon as possible is part of being a responsible business owner. After all, illness, disability or family obligations could force you to sell out sooner than you'd planned.
And even if you eventually do exit according to your own timetable, you'll want to do it properly, both to maximize your profits and ensure a smooth transition. This is especially important when passing the business on to a family member or longtime partner. You want to avoid misunderstandings that could strain the relationship and put a damper on your well-deserved retirement.
Visualize the Moment
The first step in planning your succession is deceptively simple: Stop and think of exactly what selling your business would mean in practical terms.