Let’s be honest—most of us don’t start a business thinking about how we’re going to leave it. We’re focused on launching, growing, surviving, thriving. But here’s the reality: only 20–30% of small business owners have a detailed exit plan in place. That means most are caught off guard when it’s time to transition, and the stats show it. Only 30% of small businesses make it to a second generation, and another 30% are sold. The rest? They just close their doors.

That’s a tough pill to swallow for something we’ve poured our heart and soul into. So, let’s talk about it—when is the right time to start planning your exit?

The Best Time to Plan Your Exit? Sooner Than You Think.

1. When you’re starting your business.
This might sound crazy, but the beginning is actually a great time to think about the end. When you begin with the end in mind, you can build a business with the right systems, structure, and team in place for a smooth transition down the road. Whether you want to sell it, pass it on, or just step away someday, planning ahead sets you up to do it your way.

2. When the spark starts to fade.
We’ve all had those seasons where the passion just isn’t there anymore. If you’re waking up and no longer excited to head into the shop or feel like you’ve done all you set out to do, that’s a big red flag. You don’t have to make a move tomorrow—but it is time to start thinking about your exit strategy.

3. Before you need to sell.
Life happens. Illness, divorce, a disagreement with a partner, or even the unexpected loss of a loved one. If something forces you to exit before you’re ready, not having a plan can cost you—big time. Planning when you don’t need to sell gives you control, clarity, and better outcomes.

4. 2 to 5 years before you want out.
Yes, it takes that long. If you want a clean, profitable, and intentional exit, give yourself at least a couple of years to get your ducks in a row. Think of it like staging a home for sale—you want everything looking its best to get top dollar and a smooth handoff.

Our Exit Journey: What We Learned the Hard Way

When we were first approached by a buyer, we weren’t ready. We didn’t know our numbers, hadn’t had our merchandise or assets properly valued, and weren’t even sure if we wanted to sell. That kicked off a two-year process of evaluating, cleaning up, and planning—not just for the business, but for our lives after.

Looking back, I wish we had started sooner. Not because we would’ve sold faster, but because we would’ve been in control from the start.

Why You Need an Exit Plan

• Life throws curveballs. Death, divorce, illness, disagreements—stuff happens. Planning ahead protects you, your family, and your staff.
• Family matters. If your family is involved (or not), they need clarity on your intentions.
• Legacy is important. You’ve worked hard to build something—don’t let it disappear.
• Keep the business local. A good exit plan can keep your store a staple in the community.
• Plan for your life after business. Whether it’s retirement, a new venture, or just more time with family, you need a roadmap.

What Does an Exit Actually Look Like?

There’s no one-size-fits-all solution. That’s why it’s important to explore all your options:

• Pass it down to the next generation
• Shift to a manager-run model
• Sell to a trusted employee
• Sell to an outside buyer
• Close your doors intentionally

Each option comes with its own set of pros and cons—and what’s right for one person isn’t right for another. That’s why you should have open conversations with your family, business partners, CPA, attorney, and a trusted advisor or coach.

You Deserve a Thoughtful ExitExiting your business is a huge milestone—just like starting it. And if you plan well, it can be just as exciting. Take the time now to think through what you want. It’s not just about leaving your business; it’s about stepping confidently into what’s next.