Ever business owner needs an exit strategy. At some point in the life of a business there will be a time when an owner needs or wants to step aside. Therefore, it is important that every business owner develop their own exit plan. Change in a business should be as smooth as possible. Planning the change, such as an owner’s exit, is obviously critical to for the change to be effective and smooth.
When a business has more than one owner it is even more important that the owners have an exit plan. I cannot think of a worse scenario in the life of a business than when multiple owners get into a situation where one of more owners needs or wants to exit and there is no plan or agreement.
Preferably the exit plan will be on high up on the checklist that is made when the business is in the planning or start-up phase. This will allow the elements and terms of the exit agreement to better take into consideration all the factors or issues that exist at the time of startup. There can be no argument that a well-thought and satisfactory agreement has more of chance to work when the time comes.
Regardless of the timing, it is a critical event for every business with more than one owner to develop and put in place an exit agreement. Many a good business’ have been destroyed in the because there is no such agreement in place and quite frankly there really is no excuse for this to happen.
To learn more about “Partners and Their Exit Strategies” and why putting an exit agreement in place is critical to the success of your business listen to The Weekly Business Hour broadcast this Monday February 13th from 11:00am – 12:00pm on Lone Star Community Radio. You can listen live at www.irlonestar.com and FM 104.5 and FM 106.1 or you can tune into the podcast after Wednesday February 15th by going to The Weekly Business Hour page on www.irlonestar.com or on Facebook to The Weekly Business Hour page: https://www.facebook.com/theweeklybusinesshour Look forward to seeing you this coming Monday!