Far too many business owners assume a family member will take over the helm when they’re ready to retire.
In fact, surveys show 88% of small business owners believe the same family will be running their business in five years.
Yet, in reality, only 30% of family businesses survive into the second generation and only 12% operate into the third generation.
It’s a good idea to keep these numbers in mind before you find yourself a year or two from retirement without a viable exit plan.
Even if you have a few non-family leaders on your management team with the skills and experience to run your business, they likely don’t have the money or the desire to buy you out.
It’s far better to sell your business to an outsider – earlier than you planned – than put off your retirement indefinitely.