Why You Should Develop an Exit Strategy from Your Business
Rationally, you know that you will not be able to continue running your business forever. Depending on your age, health, and passion for your work, you may be ready to step away from day-to-day operations sooner than later.
As an accomplished business law attorney, I have helped hundreds of clients start new companies with the hopes of being financially successful. From the very beginning, I encourage every aspiring entrepreneur to go into the process with a plan for getting out. Without an exit strategy, you could be leaving far too much to chance.
Three Possible Options
Thinking about how you will get out of your business may seem like negative thinking, but, in fact, it is just the opposite. Developing at least a basic exit strategy early on can allow you to plan for your business’s success more accurately and in better detail. For example, if you know that your goal is to sell your company for a substantial profit within 10 years, your business plan and daily decision-making can be geared toward meeting that objective. Conversely, if you do not have any sort of exit strategy in mind, your business planning is likely to be more disjointed and less focused.
Transitioning out of your business can take one of three forms. You could:
- Plan for your succession: Identify and train another individual to run the business after you retire. Your successor could be a family member or a trusted employee from within the company. You may choose to continue in an ownership role while allowing your successor to tend to day-to-day operations;
- Sell your business: If your company has found its niche and has shown to be profitable, you could start looking for selling options. You may be able to find interest from private buyers or, depending on your industry, from another company looking to merge with yours; or
- Close your business: While this option may be the least appealing, it may be realistic. Perhaps the costs involved with a sale would be too great, and finding a successor has proven impossible. In such a situation, you may have little option but to liquidate your assets and shut down your company altogether
Get Help With Your Exit Strategy from a Hoffman Estates Business Attorney
Developing an exit strategy takes work, and it does not mean you are ready to give up on your business. It means that you are looking ahead and planning for the future. If you own a company and would like to discuss exit strategy possibilities with an experienced Naperville business succession planning lawyer, contact the Gierach Law Firm. We will help you understand your options and create a plan that meets both your business goals and personal objectives. Call 630-756-1160 for an appointment today.