The Business Plan For Getting Out Of Business
Do You Have a Succession Plan?
If you’re a business owner, like I am, your dream was to create a business that would provide for your family and provide you with meaningful work. Perhaps you worked your whole life to build your business. But, here’s a question for you. Have you put a plan in place for when you want to get out of business? Based on statistics, my bet is that you haven’t. Don’t worry, you’re not alone!
Today, 63% of businesses in the U.S. are owned by Baby Boomers. 76% of those business owners will be looking to get out of their businesses in the next 10 years, because the average Baby Boomer is 62 years old. That represents 4.5 million businesses. And the sad news is that 66% of these business owners have no transition plan. In fact, they don’t even know what their options are.
Many business owners just assume one of their kids will take over the business or that they will be able to sell the business. However, 70 – 80% of businesses that are put on the market don’t sell. So their owners end up with little to nothing to show for their hard work that was meant to be a legacy.
Putting a Plan in Place
49% of business owners have no asset protection or estate plan, nor do they have a transition plan. Most business owners are too busy keeping their businesses running and they don’t think about what they want to do when it’s time to retire.
It’s sad to see so many business owners in this position. As a Certified Exit Planning Advisor and an Estate and Asset Planning Attorney, I help business owners consider the future in ways they typically don’t consider. I help them look at the real value of their business and bring the value up to make it more desirable to a buyer. I help business owners realistically think about what they want to do when they retire. And more importantly, I help them put a protective plan in place in the event that through death, divorce, disagreement with partners or disability, the business maintains its value.
You might have created a business plan before starting your business. It’s time now to protect yourself and your business with a well thought out exit plan.