Myth: Exit Planning Is Only for Big Companies

The Myth: Only Large Businesses Need an Exit Plan

Many small business owners believe exit planning is something only corporations or large firms need to worry about. They picture exit plans involving executive boards, investment bankers, and million-dollar buyouts—not main street businesses or local service providers.

This is one of the most damaging myths in small business ownership.

Why This Is Wrong

The reality is: every business—no matter how small—needs an exit strategy. According to Entrepreneur, most small business owners will eventually face a transition event: retirement, sale, health issue, or an unexpected opportunity. And yet, the majority have no formal plan in place.

Without an exit plan, you risk:

• Selling under pressure for less than your business is worth

• Paying more in taxes than necessary

• Leaving employees, partners, or family members in confusion

• Losing the value you spent years building

Exit planning isn’t just about maximizing price. It’s about protecting what you’ve built and ensuring the business can thrive with or without you.

What Small Business Owners Should Understand Instead

• Exit planning is a survival tool, not a luxury. It helps ensure continuity if you need to step away unexpectedly.

• It’s not just for selling. Exit planning includes family succession, employee transitions, and business closure scenarios.

• The earlier you plan, the more options you’ll have. This includes tax strategies, leadership development, and buyer prep.

• Value-building starts years before you exit. You can’t flip a switch and expect top dollar.

If you own a business—even if you’re a sole proprietor—it’s not too early (and your business is not too small) to start thinking about your exit.

Action Steps to Avoid This Mistake

• ✅ Get a business valuation. Understand what your business is worth today.

• ✅ Document your goals. Do you want to retire? Sell? Transfer to family?

• ✅ Identify successors or buyer types. Think through who might take over.

• ✅ Work with a qualified advisor. You don’t need a corporate deal team—just someone who understands small business transitions.

• ✅ Build systems and reduce owner dependency. Make your business transferable—even if you’re not leaving soon.

Bottom line: Exit planning isn’t for “someday” or for “someone bigger.” It’s for you, right now.