It is a good idea to prepare yourself for the day when you will no longer be able to or want to run your business. It is never too early to do this. You can make a business exit strategy when you are first opening the business.
Having a business exit strategy lets you be ready at any time to move on from the business. The U.S. Chamber of Commerce explains there are two main ways to exit a business: selling or closing.
Selling
Selling your business can also include passing it to a family member. It may include selling your part of the business to your spouse as well.
When you sell, you will need to go through a transition where you stop handling the daily business tasks and begin letting the new owner take over. You will have to set the new owner up with all the information he or she will need for success.
Closing
Closing your business means liquidating all the assets and shutting the doors for good. You will have to sell everything you have, from the equipment you use to the décor inside your store. You also have to handle all the outstanding debts.
Obviously, closing the business is very final. It will no longer be around to serve your customers, so you will also have to consider how to tell them about your decision. You may have a going out of business sale to help get rid of inventory and celebrate your loyal customers.
Whether you sell or close your business, having an exit strategy in place is a good idea to give you peace of mind about your business’s future.