What does it mean to have a good business contingency plan? We all want to do everything we can for our businesses in order to minimize risk and mitigate loss, and one of the most under-rated strategies for creating a solid business contingency plan is to create an exit plan.
Many small business owners don’t believe that exit planning applies to them because they love their business! They don’t foresee, in the near or distant future, the need or desire to sell their business. Many small business owners want to keep their businesses in the family. Some business owners are in no rush to retire. Why would someone need an exit plan when they have no desire to sell their business?
The best exit plans are focused on upholding and protecting the value of a business by ensuring that the business can successfully operate independently of the owner. Having an exit plan isn’t just a smart strategy for when you want to sell your business. It’s a brilliant contingency plan just in case you ever NEED to sell your business. When there is an exit plan in place, it doubles as a business contingency plan in case anything should arise that would prevent you from serving in a key personnel position.
“Having an exit plan is a good business strategy even if you decide to stay with your company forever.” – Andrew Mayhew, Wealth Architect
In case of an emergency, this allows a business owner to step away for a period of time without hurting the business. In this scenario, a solid exit plan creates great peace of mind. No need to worry about the business because it has been built to retain its value and stand strong even during a major transition, or change of leadership.
What if a business owner suddenly gets a brilliant idea for an entirely new business? Having an exit plan in place can create the freedom to explore new opportunities without neglecting the existing business.
Perhaps there just comes a time when a business owner wants to operate more remotely, spend more time with family, take maternity or paternity leave, or enjoy more frequent vacations! With a great exit plan already in place, being able to have more free time without negatively impacting your business becomes a possibility.
The main reason most small business owners do not create an exit plan is that they think it is only for people who want to sell their business. But an it is actually one of the BEST business contingency plans a person can create!
Are you ready to start exploring more options for how to create an exit plan that is curated to meet the needs of your business? We are here to help. Don’t miss out on watching the episode for more detailed instructions on how to make an exit plan for your business that will double as a brilliant business contingency plan! Also, included in this episode, is an exclusive link to set up a private consultation with one of our Wealth Architects who can help you create an exit plan that specifically serves as the business contingency plan you never knew you always wanted.