As Benjamin Franklin said, \u201cIf you fail to plan, you are planning to fail!\u201d Would you start a business planning to fail?<\/p>\n
Most business owners start their firm with a plan to secure start-up capital, find qualified employees and attract new customers. However, few owners plan their exit. Whether you call it a succession plan (how the business will continue) or an exit plan (how you will exit your business), the concepts are virtually identical. A successful exit requires a successful succession. For simplicity, I will refer to both of these plans as an exit plan. Whether the exit plan is for your business or your client, there are three main concerns.<\/p>\n
Why Should a Business Have an Exit Plan?<\/strong><\/p>\n Unless you intend to work as hard as possible until that fateful morning you wake up no longer able or willing to continue, you need to anticipate your departure and make the necessary plan. Not only will a plan provide a roadmap for your exit; it will also provide a framework to establish the date or event that precipitates your departure. In the absence of a plan, chance, not you, will control your fate, and chance may not be as generous as a plan in determining your future.<\/p>\n Like a champion boxer who fights after his strength has waned, you should not continue as the primary driver of your business when your heart is no longer in the game. If you wait too long, you will become a shepherd driving your business down the tortured road\u00a0from profitable to break-even as your employees and clients head toward greener pastures. In the absence of a plan, it is likely you will continue to work, hoping for a sign that will only be apparent in hindsight.<\/p>\n A successful exit can be more complex than a successful start. This is particularly true given the reality that health issues or other unanticipated events can always intervene to truncate or even nullify the implementation of an exit plan. It is not enough just to make a plan; it must be structurally integrated to ensure it can be activated at a moment\u2019s notice should a crisis occur. Failing to make an exit plan is to make a journey without a destination. Not only will you never know when you’ve arrived; you may forget why you started.<\/p>\n When Should a Business Have an Exit Plan? <\/strong><\/p>\n When should you make an exit plan? Now. Why? Here are five reasons why:<\/p>\n What Goes Into an Exit Plan?<\/strong><\/p>\n A good plan anticipates uncertainty and provides a touchstone for the structural changes required to maximize transferrable goodwill. An exit plan has three major components:<\/p>\n\n