You can find plenty of advice on starting a business, some good and some not so good. But what about your exit strategy? What should you do to prepare for retirement, sell your business or pass it on to a family member?
"You should develop a 3-5 year sucession plan that aims to transfer ownership of the business," says Beth Milito of the NFIB Small Business Legal Center. "Not planning an exit strategy can have disastrous financial consequences for your family and the business."
Milito says keep two things in mind when planning your exit strategy:
- Get professional advice from someone like a tax expert, financial adviser, CPA or professional business valuator.
- Assess your objectives and determine your financial needs, beginning with asking yourself what you want to get out of transferring your business. Who'll take over the business? Will you need to rely on the business for future income?