Small Business Owners Plan to Exit Soon, but Have No Exit Plans / by Kerri
New research shows the majority plan to leave their businesses within 10 years
In a press release this week, Securian Financial Group released the results of a recent exit planning survey of 500 small business owners. Their results highlighted several points that apply to you:
- “More than sixty percent of small business owners have no plans for exiting their businesses nor are they working on one. “
- They are “so consumed by running their businesses that they haven’t found time to start the [exit] planning process.”
- “Small business owners who may be counting on their companies to fund retirement or provide a source of retirement income may be in for a surprise.”
- “One third of the business owners we talked to plan to leave their businesses in the next five years and 60 percent plan to exit in 10 years, but many of them have no exit plans in place,” said Andrew O’Brien, director, Client Solutions, Securian Financial Group.
- “With no exit plan, the small business owner not only risks the future of the firm but also its ability to generate income for the founder.”
- “Many owners have yet to find someone to run the business after they exit nor do they know how much their businesses are worth. Those who look for assistance with an exit plan say legal and financial expertise are most important. Many look for a team of experts.”
- “More than half of the people we talked to plan to sell their businesses, either to a partner, key employee or third party,” said O’Brien. “An exit plan helps the founder lay the ground work for a successful sale.”
I could not agree more. The urgency to act is now. Exit planning is not a weekend do-it-yourself-project. Hire an exit strategist who will mentor you through the planning and execution of your ideal exit strategy. Early exit planning reduces risks, increases options and ensures you can successfully sell your business for maximum profits.
If you have no exit plan, call 508,820.3322 or contact us. for a free 30 minute confidential consultation to discuss your objectives and to determine what you need next on your timeline.