Here’s a template I created for my clients. It’s not the easiest subject to talk about, but it’s a necessity. First and most importantly, when you know how you’ll leave, and when you plan to leave, you’ll make better business decisions now (because you’re taking the future into consideration, too.) Plus we read horror stories about an owner who dies suddenly. No one knows the password to get into their computer. No one knows how to run the business. Things fall apart and those left behind suffer.
How would you like to exit from your company? Fill it in and put your vision in the comments box on this page. Remember, if you don’t plan it, it’s going to happen anyway. Best that you exit in a way that will give you (or your family) the maximum return on the time and talents you’ve invested into your company.
Some of my clients have a 2 prong approach — they will work less, maybe manage the company and then eventually retire 100%. Some will sell it to employees, or family members. Knowing how you plan to leave your company will help you set it up so that you can do, just that.
In the year 20___, ____(your name)_______________, will exit
In one or more of the following ways:
- Drop dead at their desk
- Become disabled
- Get divorced or spouse dies
- Sell to an outside 3rd party
- Sell the company to employees ESOP
- Sell the company to one or two key employees
- Creates a public company IPO it
- Hire a CEO and become a manager or employee.
- Retain ownership but passively run it
- Transfer, leave or sell the company to family members
- Drive the company to the ground
- Forced to sell to partner
- Leave the company to languish on it’s own
- Get tired of the business and want to start something different
- Liquidate it
How are you planning to exit your company?