5 Things Business Owners Should Consider When Leaving the Business

What are 5 things business owners should consider when leaving the business? Business cessation is not easy. You spent your whole life building a business that has repaid you for your hard work tenfold. But what will happen to it when you are no longer there?

Let’s talk about the top considerations for a business owner to think about so they can be prepared for the future.

If you have been wondering how to prepare an exit strategy for the most return on your investment, we have got you covered. Here are five things business owners should consider when leaving the business:

#1: Business Succession

One of the most important components of an exit strategy is figuring out who will take the reins from you. Will a friend or family member take over? Perhaps it will be a loyal employee who has been around for years and has seen what you do each day. The right business succession plan can ensure the business you worked so hard to build is in good hands after you are gone. A business lawyer can help you develop a plan.

#2: Sale of Business

Sometimes, business owners stick around after exiting a business by serving as a silent partner or taking a share of the profits. If you are exiting your business, think about whether you want to remain involved at all (even at a minor level) or if you would like to sell your business to an investor. This is a good opportunity to make back a profit if you do not have the time or energy to deal with the business anymore.

#3: Liquidation

Do you want to sell everything and not think about it anymore? This process is called liquidation. You can auction off everything you used to run your business and live on the proceeds while you transition into something else. This is popular with small restaurants that do not have the time to wait for the business to sell.

#4: Initial Public Offering (IPO)

Making your business public allows you to sell your shares to investors. As a bonus, you may receive a huge marketing boost since more people will know about the business, which can benefit the bottom line. You might also substantially profit from the sale of the shares.

#5: Merger and Acquisition (M&A)

It is not uncommon for a large company and a small company to join forces in a business exit. If your business has a unique skill set that complements another company’s offerings, this can be a smart move for a buyer.

Conclusion

Even if you do not want to leave your business anytime soon, all business owners need an exit strategy. You can profitably exit with most options and ensure your business is in a reliable successor’s hands.

It might take some time to develop your strategy, but it will be time well spent.  An experienced business lawyer can help you with your transition. When you need help, contact us.