An exit strategy is a person’s planned exit from a business, including succession planning. An exit strategy can be the result of different scenarios, such as a merger, a sale to another owner or closure. Whatever the case, as a business owner, exit planning should include audited financial statements for (at least) the last two years and a clean balance sheet.
As a business owner, planning an exit strategy is a deliberation of questions such as:
How do you see yourself transition out of your business?
How much income do you need to leave with?
And what sort of exit method do you envision? Downshifting yourself to consultant? Growing the business to sell it? Grooming an heir to take your place?