A flyer showed up in my mailbox one day. It was titled “Thank You for the Memories.” With a headline like that, you know it’s not going to be a good story.
It wasn’t. The reality is that 80% of businesses do not sell.
I live in the Pacific Northwest, and like so many communities across America, we’re proud of the people and businesses that make up the fabric of our town. But what struck me deeply was the story behind that flyer. The owner of a business I’d known for years was closing her doors after 53 years of serving the community.
Fifty-three years! That’s a rare accomplishment, especially given the odds against small businesses. The truth is most businesses fail. The numbers are staggering:
- 20% of new businesses fail within the first year.
- By year three, that number jumps to 37.9%, nearly 40%.
- By the fifth year, half of those businesses will have closed.
- By year ten, only about 30% will remain in operation.
- After 15 years, the odds of survival become nearly impossible.
So, how did this business owner—a woman who ran her shop with passion and dedication for over half a century—find herself in a position where closing was her only option?
Her reason wasn’t because of market failure, poor management, or a lack of demand. She was fighting cancer for 18 years. After five battles with the disease, she was exhausted—physically, mentally, and emotionally. She sold the business, her building, and let go of something she loved dearly, not because she wanted to, but because she had to.
The flyer closed with a heavy heart: “It is with a heavy heart that I am announcing the closing of my beloved shop…” By the time I reached the end of the flyer, I had tears in my eyes. I felt deeply for her and the community she served. She had been a staple in our town for over half a century, and now, because of circumstances beyond her control, that chapter was closing.
The Impact of Business Closures
When a business closes, it’s not just the owner who is affected—it’s the entire ecosystem that surrounds it. The employees, the family who depends on the income, and even the community at large, all feel the ripple effects. As business owners, we often don’t realize just how much our businesses contribute—not just financially, but emotionally, to the lives of those who rely on us.
For this owner, the community she built was more than just a customer base. She knew us by name, and we knew her. Small businesses create connections that can’t be replicated by corporate chains or online retailers. When that connection is severed, the loss is deeply felt.
The Statistics Are Alarming
According to recent reports, there are over 33.2 million businesses in the U.S., and around 51% of them are owned by Baby Boomers. The problem? Only 20% of businesses will successfully sell when the time comes. This means that 80% of business owners won’t be able to unlock the wealth tied up in their businesses through a successful exit. And sadly, many business owners will find themselves closing their doors due to unforeseen circumstances, much like the woman in the flyer.
The numbers are frightening. If these businesses fail without a succession plan or proper exit strategy, we risk not only the livelihoods of business owners and their families but also the fabric of our communities. So, why aren’t more business owners preparing for this inevitable transition?
The Why Behind the Problem
I was inspired to write the book: What is your exit strategy? to help change the odds for business owners across the country. The need to plan an exit strategy is more critical than ever, but many owners are in denial or procrastinate when it comes to preparing for their exit.
We need to shift the mindset. Planning for the sale or transition of your business isn’t just about preparing for a sale—it’s about ensuring that the business continues to thrive even after you’re gone. It’s about protecting your wealth, your legacy, and your community.
I’ve seen it time and time again: the owner who refuses to face the reality of their business’s value or the one who assumes they can just sell whenever they want. But without a clear plan, you risk losing out on the true value of your hard work and years of dedication.
The Right Mindset
What if we could change the statistics? What if we could increase the success rate of businesses being sold from 20% to 40% or even 50%? That would mean fewer businesses closing their doors due to exhaustion or life circumstances and more owners finding a path forward that ensures their business continues to thrive—whether under new ownership or through a well-planned succession.
Take, for example, the story of a business owner who was offered $52 million for his company. Instead of jumping at the offer, he consulted with a trusted advisor, who suggested they take the offer out to market. Within a month, the advisor found a buyer willing to pay $70 million. That’s an extra $18 million, and the impact of that windfall ripples out to the community, to charitable causes, and to the business owner’s legacy.
What could you do with the extra resources from a successful sale? What causes could you support? What legacy could you leave behind?
Preparing for Success
It’s never too early to start planning your exit strategy. Whether you’re a year away from selling or a decade, taking the time to develop a strategy can make all the difference. I know it’s not always easy to let go of something you’ve built with your own hands, but trust me when I say that it can be done in a way that allows you to walk away proud and prepared for the next chapter of your life.
The mission of my book—and this article—is to change the paradigm for business owners. The small business sector is the lifeblood of our economy, and we need to ensure that these businesses don’t simply close because the owners were unprepared.
Selling your business isn’t just about closing a chapter—it’s about opening the door to new opportunities, new legacies, and new possibilities for you, your family, and your community.
Will You Be Ready?
If you knew that you had a 20% chance of success in selling your home, wouldn’t you do everything in your power to increase those odds? The same logic applies to your business. Don't leave your legacy to chance—start preparing today, and ensure that your business’s exit is as successful as its growth.
Let’s change the odds. Together, we can ensure that more businesses sell successfully and leave behind a legacy that benefits everyone involved. Will you be on the winning side?
I know the journey to prepare your business for sale or transition isn’t easy, but it's worth it. If you’re ready to take control of your exit strategy, I encourage you to start the conversation today. Your future self—and your community—will thank you.
Final Thoughts
Business exit planning is more than a procedural necessity—it is a strategic, reflective, and transformative process. By approaching it with the same passion and thoroughness, business owners can create a plan that safeguards their legacy and opens doors to new possibilities. Ultimately, the journey of exit planning is about taking control of your future, ensuring that when the time comes, you exit on your own terms and with confidence.
A well-executed exit plan isn’t just about leaving—it’s about leaving on your terms. Whether your goal is financial security, business legacy, or a stress-free transition, the right planning ensures you exit with confidence.
Want expert guidance for your business exit? Contact us today for a personalized consultation
