Most business owners spend years … sometimes decades … building their businesses. But have you ever stopped to ask yourself:
“How does this all end?”
Many business owners never plan their exit. They put it off, assuming they’ll deal with it “one day.”
The problem is that that day comes faster than expected, and without a plan, the options shrink.
The Cost of Not Having an Exit Plan
Not having an exit plan doesn’t mean you won’t exit … it just means you’ll do it on someone else’s terms. Here’s what can happen:
- You stay too long. Many owners push beyond their prime, struggling to maintain energy, innovation, or motivation. As a result, the business suffers, and so does its value.
- You (or your loved ones) sell under pressure. An unexpected health issue, financial downturn, or personal circumstance forces you to make a rushed decision … often at a lower price.
- You lose leverage with the market. Buyers can sense when a sale is reactive rather than planned. A well-prepared owner commands a higher price and better terms.
- Your legacy is at risk. Without a structured transition, the culture and reputation you built can unravel quickly.
When Should You Start Thinking About an Exit?
The optimal time to start planning is well before you actually need to. Even if you enjoy running your business now, it’s wise to create a structure that provides you with options… to sell, take a step back, or even scale with reduced involvement.
Ask yourself:
- Do you want to sell to an investor, a competitor, or your employees?
- Would you prefer a gradual exit or a clean break
- What’s your ideal financial outcome?
- What will you do after you exit?
If you don’t know the answers, that’s a sign to start planning.
How to Build an Exit-Ready Business
An exit-ready business isn’t just about preparing for sale … it’s about creating a business that’s valuable, scalable, and not dependent on you. Here’s how:
✅ Get your financials in order. Buyers (and even successors) want clean, transparent records that prove profitability and growth.
✅ Reduce owner dependency. If your business can’t run without you, it’s not truly a business … it’s a job.
✅ Strengthen your leadership team. A capable management team increases business value and gives you flexibility.
✅ Standardise systems and processes. Buyers look for businesses that run efficiently, with or without the owner.
✅ Know your valuation. Get a business valuation early so you understand what it’s worth … and what could make it worth more.
Why an Exit Plan Gives You More Freedom Now
Ironically, planning your exit benefits you not only down the road but also improves your quality of life today.
A business built for sale is also less stressful, more profitable, and more rewarding to run.
Instead of being tied to daily operations, you’ll be able to step back, focus on growth, or even take a break without everything falling apart.
What's Your Bigger Plan?
Some business owners avoid planning because they don’t know what they’ll do after they leave.
If that’s you, ask yourself:
- Do you want to mentor, invest, or start something new?
- Would you prefer more time for travel, family, or passion projects?
- Have you thought about how you want to be remembered in business?
The truth is, a business exit isn’t an end … it’s a transition to your next chapter.
The question is … will you control it, or will it control you?
Your Next Step
If you’ve never thought about an exit plan, now is the time. Even if you’re years away from making a move, having a strategy in place ensures that when the time comes, you’re ready, not scrambling.
The sooner you plan, the better your options will be.
The information contained in this article is general in nature and is not legal, tax or financial advice. Contact a lawyer or a tax or financial professional for information regarding your particular situation. The information in this newsletter is provided with the understanding that it does not render legal, accounting, tax or financial advice. Clients should consult their legal, accounting, tax or financial professional in specific cases. This article is not intended to give advice or represent our firm as qualified to advise on all areas of professional services. Master Planning is a discipline that typically requires the collaboration of multiple professional advisors. To the extent that our firm does not have the expertise required on a particular matter, we will always work closely with you to help you gain access to the resources and professional advice you need.
Any examples provided are for illustrative purposes only. Examples may include fictitious names and may not represent any particular person or entity.
