A flyer landed in my mailbox with a simple, yet emotional title: “Thank You for the Memories.” I knew from the headline that the story it told wouldn’t be easy to hear. Sure enough, it wasn’t. The truth is, 80% of businesses never sell.
Living in the Pacific Northwest, I’ve seen so many small businesses that become cornerstones of our communities. But when I read that flyer, it hit me hard. The business owner I had known for years was closing up shop after 53 years of service. Can you imagine? Over five decades of dedication, and yet, like so many, she was forced to close her doors.
Her story wasn’t one of mismanagement or market failure. It wasn’t even about the competition. The owner had fought cancer for 18 years, and after battling it five times, she simply couldn’t do it anymore. Physically and emotionally drained, she had to let go of the business she had loved and nurtured.
The flyer read: “It is with a heavy heart that I announce the closing of my beloved shop…” By the end, I couldn’t help but feel the weight of it all. A cherished business closing—not because of failure, but due to forces beyond her control.
The Ripple Effect of Business Closures
When a business closes, it’s more than just a loss for the owner. It’s a loss for the employees, their families, and the entire community. Small businesses don’t just provide goods or services; they create connections that bind people together. And when that business is gone, so is part of the fabric of the community. This loss can’t be filled by big corporations or online giants.
The Statistics Don’t Lie
Did you know that nearly 33.2 million businesses exist in the U.S.? And of those, more than half are owned by Baby Boomers. The sad reality, however, is that only 20% of businesses will actually sell when the time comes. That means a staggering 80% of owners will be left without an exit strategy—either forced to close or sell for far less than their business is worth.
Why are so many business owners unprepared?
I decided to write What Is Your Exit Strategy? to help change the odds. Too many business owners ignore or procrastinate when it comes to preparing for their exit, leaving themselves and their families vulnerable. Preparing for your exit isn’t just about selling—it’s about ensuring that your legacy continues. It’s about safeguarding your wealth and keeping the community you’ve built intact.
The truth is, business owners often underestimate the value of their businesses or assume they can sell whenever they choose. But without a clear strategy, they risk losing everything they’ve worked for.
Changing the Odds
What if we could change those odds? What if we could increase the success rate of business sales from 20% to 40% or even 50%? By doing so, we could prevent business owners from closing their doors under dire circumstances and instead help them transition to new ownership or succession, securing their legacy for future generations.
Take the example of a business owner who was offered $52 million for his company. Instead of taking the deal, he consulted a trusted advisor who recommended testing the market. Within a month, he found a buyer willing to pay $70 million—an extra $18 million! This isn’t just about money. The added resources helped the community, funded charitable causes, and bolstered the business owner’s legacy.
Imagine what you could do with the wealth from a successful sale. What could you do for your community? What kind of legacy could you create?
Preparing for a Successful Exit
Planning for your business exit doesn’t have to start at the last minute. Whether you’re looking to sell in a year or a decade, starting the process early is key. I know that letting go of something you’ve built is difficult, but I also know that it can be done in a way that helps you walk away proud and ready for the next chapter.
The goal of this article—and my book—is to change the way business owners think about exit planning. Small businesses are the backbone of our economy, and we can’t afford for them to close just because owners weren’t prepared. Your exit isn’t just about leaving; it’s about ensuring that your business thrives in the future.
Are You Prepared for Your Exit?
If you knew you only had a 20% chance of selling your home, you’d probably do everything you could to increase your odds. The same logic applies to your business. Don’t leave your legacy to chance. Start planning your exit today to ensure a successful transition and a thriving future.
Final Thoughts
Exit planning is more than just a procedural necessity—it’s an essential process for securing your future and your legacy. A thoughtful, strategic exit plan ensures that you leave on your own terms, with confidence and control. Whether your goal is financial security, safeguarding your business legacy, or ensuring a smooth transition, the right exit strategy can make all the difference.
Ready to take control of your future and secure your business’s legacy? Contact me for a personalized consultation and start preparing for a successful exit today.
