Are You Really Ready to Exit Your Business?
10/28/2024 (Updated: 2/2/2026)
If you are a business owner, at some point you will have to exit your business. This video was created to help you understand the need to establish and execute a "life after business" plan. SouthState Wealth's Phillip Garrison, CTFA, CEPA, is here to help you with considerations you'll need to understand to create a successful exit from your business.
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Hi. My name is Phillip Garrison and I’m a Wealth Advisor with SouthState Wealth. I am also a Certified Trust & Financial Advisor and Certified Exit Planning Advisor.I love to ask clients about their goals and objectives so that I can provide meaningful advice to them. When it comes to your business, you will exit that business at some point. Are you personally ready for that? Do you have a life after business plan? Have you discussed that plan with loved ones, friends, or even key employees of your business? Think about it. Much of your life has been centered around your life as a business owner.
You must exit to something. Have a plan and commit that plan to writing.
According to the book, Walking To Destiny: 11 Actions an Owner Must Take to Rapidly Grow Value and Unlock Wealth, 93% of business owners have no “life after business” plan. It’s not surprising then, that 70% of business owners, deeply regret having sold their business, within a year of selling. 80% of businesses that go to market, do not sell at all. There can be many reasons for this, including the offer being far less than what the owner believes the business to be worth, but the most common reason is that the owner has cold feet and doubts as the time to close approaches.
Being prepared for your eventual and successful exit is crucial. It’s vitally important that you and those closest to you are personally ready for your exit. This readiness includes things like having a strong financial plan, which takes all of your assets into consideration. Will you be able to retire to the next chapter in your life at the standard of living you want? Unlike other high-net worth individuals, in most cases, 80% of a business owner’s net worth consists of the business. How will you harvest that value in order to retire in the lifestyle you have become accustomed to? And, will you be able to harvest the true value of your business? Having an estate plan in place is another crucial step. How about a contingency plan to address the risks of exiting the business unexpectedly? Divorce, disability, or death ahead of your planned exit from your business are real risks. These risks should be considered and a contingency plan should be strategized and put in place.
Let us help you think through all of these issues and develop a plan so that you are ready to exit your business on your terms, knowing that you are personally and financially ready for your next chapter; your life after business.
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