Escaping the Business Trap

Many small business owners, if they can find the time to look up from the daily rush of running the business, will see that:

  • A significant part of their wealth is invested in the business
  • They expect the business to fund their retirement
  • They don’t know how much they need to retire
  • They don’t really know what the business is worth
  • They have no idea what they would do if they left the business
  • They assume, without really checking, that when they want to leave business someone will buy it, or a family member will take it over
  • They believe they don’t have the time to plan properly, and can’t afford a real exit plan – even though they don’t know how long it will take or how much it will cost

If this sounds to you like a train wreck waiting to happen, you would be right. It is not surprising that only about 25-30% of business owners achieve a successful exit from the business. As a result, the owner and the family never enjoy the benefit of the wealth that was locked inside the business.

To escape the trap, an owner needs a plan.