How to Leave Your Business: A 5-Year Plan

Ask any former business owner whether it was harder to start their business or leave it, and you’ll likely be surprised by the answer.

Sure, starting a business is extremely challenging, with any number of variables and unexpected obstacles that could trip up even the savviest entrepreneur. Getting out, however, can be even more complicated, for very different reasons. But it doesn’t have to be that way. 

Deciding to sell a business presents a whole host of questions that need answers. The biggest challenge I see when I talk to my clients is this: Are they ready to answer those questions honestly? Even more important, can they? If business owners can’t be honest about why they’re getting out and what they want out of a sale, they’re asking for trouble. 

Start Planning Your Exit at Least 5 Years in Advance

One of the biggest mistakes I see business owners make when they’re looking to sell is not having a clear exit timeline. Selling a business that you’ve put years into building is a planned process. You shouldn’t wake up one morning and decide, “I’m going to sell.” It’s a thoughtful process, and it needs to be treated as such. I usually tell my clients that five to seven years is the goal. That’s enough time for them to figure out what they want out of a sale, and it gives us both time to draw up the right kind of plan to make it work.