As a business owner, we realize you've got an endless list of things to consider. And, with everything going on, it's not always top of mind to consider what would happen with your business if an unexpected circumstance arises. However, there are 4 common reasons why business owners leave their business that should not be ignored. They are Death, Divorce, Disability, and Desire. In this blog, we'll highlight those 4 reasons so that you can not only be aware, but plan accordingly.
1. Death
When it comes to Death, this is often the most obvious and unexpected reason that a business owner will leave their enterprise. When the main person driving the business passes away, it can be hard to transition ownership. To avoid any unnecessary complications in the future, we recommend having a succession plan in place so that those left behind know what steps to take in order to keep the business running smoothly.
2. Divorce
Divorce can be another large factor when it comes to leaving your business. When two spouses own a business together, if they decide to split up, it may be difficult for one party to remain as the sole owner. In this situation, we recommend that both parties draw up a contract that outlines their agreement on the business and its assets. This will help to ensure that both parties are protected in the event of a divorce.
3. Disability
If you become disabled, it can be difficult to keep managing your business. In some cases, depending on how severe the disability is, it may be impossible for you to continue. If you find yourself in this situation, we recommend that you look into disability insurance so that your business can be taken care of even if you're unable to continue on.
4. Desire
Finally, Desire may be the most common reason a business owner decides to leave their enterprise. Maybe they've achieved all the goals they set out to achieve, or maybe they've just lost the motivation and passion that drove them in the first place. Whatever the case may be, we recommend that you create a plan for transitioning out of your business if this is something you're considering. This could include selling to another person or company, passing it on to a family member or employee that can take over, or just dissolving the company.
No matter what reason you may have for leaving your business, it's important to plan ahead so that you can be prepared and make sure that your business is taken care of even in the event of an unexpected circumstance. Now that we've outlined the 4 most common reasons why business owners exit their company, you can ensure you understand how to prepare in advance and protect what you've built.