Entrepreneurs may have unlimited energy when they are young. However, that tends to decline significantly as they get older. Over time, the business can grind them down, particularly if they don’t enjoy it anymore.
That’s why getting out of your business is imperative. You need an exit strategy business plan just as much as you need a plan for growing your business or launching new products.
Of course, you don’t want to drop everything. Instead, you want to find a way to pass the buck (or at least keep all your assets intact).
Here’s what to do:
Pass the Business Over to a Family Member
One option is to pass the business over to a family member. This way, you can maintain some control while stepping back from direct operational duties.
Passing the buck to your children or another relative makes it more likely your brand will keep its identity. Your firm shouldn’t change beyond recognition, just because it’s under new management.
You can also keep the family name, which is helpful for branding. For instance, “Smith and sons.” probably still makes sense if you pass the enterprise on to your kids.
Sell the Business
If your business is profitable, then sell it. Selling a business is actually surprisingly easy if you get the help of a broker. Business professionals can manage the entire M&A process for you, letting you sit back and wait for the capital.
Cashing out of a business is often worth a considerable sum of money. You can make a fortune if you can demonstrate a consistent stream of profits into the future.
Don’t let your burnout put those earnings at risk. If you continue working, you could put your entire enterprise at risk. Handing it over to a fresh set of people is the best strategy.
Step Back From Management
As a business owner, you don’t have to take charge of operational or managerial duties. You can simply hire people to do it for you.
Therefore, consider stepping back from management. Ask if you need to involve yourself daily or whether you could benefit from taking a break. Remember, you can always get back into it if the opportunity arises.
File for Bankruptcy
If you own a limited company that’s not making money (and can’t pay back creditors), consider filing for bankruptcy. This way, you can liquidate the firm and potentially protect your personal assets at the same time.
Filing for personal bankruptcy does bring various penalties along with it. For instance, you may not be able to take out a credit card or mortgage.
Liquidate the Business
Selling all your business’s assets is another way to step away from your business and take the money with you. Cashing out helps you recover everything you’ve put into it and direct it towards something else, perhaps a cruise.
If you’re planning on liquidating your business, work with an accountant. Make sure you cross all your “T’s” and dot all your “I’s” before moving forward with your plans.