Why Most Business Owners Postpone Exit Planning

Miranda Kishel
Jun 13
2 min read

We Don’t Build the Exit While We’re Still in the Business

Most small business owners put off exit planning for one simple reason: they’re too busy running the business. Growth, hiring, operations, and client fires take center stage—leaving no time to think about what happens when it’s time to walk away.

But here’s the hard truth: if you don’t make time for exit planning now, you may not have the luxury of choosing when—or how—you leave later. And the longer you delay, the fewer your options become.

Why This Matters Right Now

We’re in the middle of a generational shift. Tens of thousands of businesses will change hands in the next decade as baby boomers retire. Yet according to Inc.com, more than 60% of business owners don’t have a formal exit plan.

This isn't just a personal risk—it’s a market reality. Owners who aren’t prepared will face:

Fewer qualified buyers
Lower valuations
Rushed or distressed deals
Increased tax liabilities
A loss of legacy

If you’re thinking, “I’m not ready to exit yet,” that’s exactly why you should start planning now.

From the Front Lines: What I’ve Seen

In my work with small business owners, I’ve noticed three common reasons for exit avoidance:

Emotional attachment – The business is their identity. Planning to leave feels like giving up.
Uncertainty – They don’t know what they want next, so they stay in place.
Perfectionism – They think everything has to be “just right” before they can plan a transition.

But here’s what separates the smart sellers from the stuck ones: the successful ones start exit planning when they’re not ready to leave. They treat it like any other strategic investment—with long-term payoff.

My Perspective: Planning Will Become the Standard, Not the Exception

I believe the next generation of entrepreneurs won’t see exit planning as a retirement exercise. They’ll see it as an essential part of running a smart business—just like managing cash flow or building systems.

In the future, investors, lenders, and even employees will expect business owners to have a documented transition strategy. Businesses without one may be seen as risky, outdated, or poorly managed.

We’re already seeing early signs of this shift.

What to Do If You’ve Been Delaying Exit Planning

If you’ve avoided exit planning, you’re not alone—but it’s time to act.

Start small:

✅ Define your personal goals
✅ Get a business valuation
✅ Identify your ideal timeline
✅ Meet with a trusted advisor
✅ Build an outline—even if you don’t plan to exit for years

You don’t need all the answers today. But you do need to start asking the right questions.

The bottom line: Exit planning isn’t about leaving—it’s about leading your business with intention.

If you're still running your business, it's not too late. Visit our Exit Planning page to learn how we help small business owners create smart, flexible strategies—on their terms, not someone else’s.