How to Prepare to Exit Your Business (Without Losing Your Mind)
Let’s talk about something that most business owners don’t think about until it’s crunch time: leaving the business. Whether you’re dreaming of early retirement, ready to try something new, or just tired of wearing 47 hats every day, having a solid exit plan is crucial.
But here’s the thing—exiting a business isn’t like quitting a job. You don’t just send an email and peace out. It takes planning, prep, and some real honest thinking. So, if the idea of someday stepping away from your business has even crossed your mind, here’s how to start getting ready—no corporate jargon, just straight-up talk.
1. Know What You Want (and Be Real About It)
First things first—what does “exit” actually mean for you? Do you want to sell your business and cash out? Pass it down to a family member? Merge with another company? Or maybe you want to keep a small piece of it but let someone else run the show?
There’s no right answer here, but being clear on your goal makes everything else easier. Don't wait until burnout hits—start thinking about this before you’re desperate for a change.
2. Get Your Books in Order
If your financials are a hot mess, now’s the time to clean them up. Any potential buyer or successor is going to want to see the numbers—clean, organized, and up to date. That includes:
Profit and loss statements
Balance sheets
Tax returns
Operating expenses
Cash flow
Basically, all the stuff you might have ignored for years while focusing on keeping the lights on. Hire a good accountant if you need to. Future you will thank you.
3. Make the Business Less About You
Here’s a hard truth: if you are the business—meaning nothing gets done without you—then it’s going to be tough to sell or hand it off. Start creating systems, training your team, and documenting your processes. Make it so the business can function without you. The more self-sufficient it is, the more attractive it is to buyers or new leaders.
4. Get a Valuation
How much is your business actually worth? You might have a number in your head, but getting a professional valuation can give you a more realistic picture. It also helps you price it correctly if you’re planning to sell. Think of it like getting your house appraised—except this house has blood, sweat, and probably some tears in it.
5. Talk to the Right People
This isn’t something you have to figure out alone. Talk to a business broker, lawyer, accountant, financial advisor—people who know the ins and outs of business exits. They’ll help you avoid costly mistakes and make the transition smoother.
6. Plan for What’s Next
Whether you’re retiring, starting a new venture, or taking a sabbatical on a beach somewhere, have a plan for what’s next. Trust us—going from 100mph to zero without a plan can leave you feeling lost. You’re not just exiting a business, you’re starting a new chapter.
Final Thoughts
Leaving your business doesn’t have to be scary—or messy. The key is starting early and being intentional about it. Your future self (and maybe your future buyer) will appreciate the effort.
So go ahead, dream big. Just make sure you’ve got a solid plan to bow out like a boss when the time is right. You built it—now set it up to live on, even after you’re out living your best life.