The Problem With Waiting
Too many business owners wait too long to start their business exit planning. They tell themselves they will figure it out “someday.” But then, someday turns into next year. Or the year after that. And suddenly, time runs out.
If you are in your 60s and still running a company, it is time to start planning your exit. Not next quarter. Not when the market shifts. Now.
According to the Exit Planning Institute, 70% of businesses that go up for sale never sell. That means most owners do not walk away with the deal they hoped for. Many walk away with regret.
Your Business Isn’t Ready Without a Plan
Most small to mid-sized companies rely heavily on the owner. That is the first problem. If you leave, the business often cannot run without you. Buyers do not want that.
Jessica Jung Wealth Advisor, has worked with many owners in this stage of life. She says the biggest mistake is assuming a profitable business is also a sellable one.
“I had a client in his 60s who was ready to cash out,” she said. “But everything ran through him. No systems. No succession. It was not a business—it was a job with staff.”
They had to back up and rebuild the structure before even starting a sale.
You Could Miss Out on Major Tax Savings
Selling without an exit plan does not just hurt value; it hurts your taxes, too.
If you wait until the year you sell, you are too late to use many of the tools that reduce your tax bill. You need to spread the exit planning across several years.
Business owners over 50 can take advantage of catch-up contributions to retirement accounts. If you are over 60 and still active in the business, you might be able to defer $500,000 or more pre-tax. If your spouse is also involved, that could be closer to $1 million.
But these strategies take time. You cannot just write a check at the last minute and expect to avoid taxes. It has to be set up properly, with documentation and payroll.
“I have helped clients defer hundreds of thousands in income taxes, just by starting their business exit planning two or three years before a sale,” said Jung. “But once the deal closes, that door shuts.”
You Need a Clear Timeline
Waiting adds risk. Health changes. Markets shift. Family dynamics evolve. If you do not have a written timeline, you are not in control.
Start by picking a target exit year. Write it down. Then ask what needs to be true for you to step away.
Think in terms of:
- Who will run the company if you are not there?
- Can you take a month off without the business falling apart?
- Are your books clean and separate from personal expenses?
- Is your company attractive to a buyer?
If you cannot answer yes to those, you are not ready to sell.
Don’t Assume Family Will Take Over
Many business owners assume business succession planning means passing the company to their children. But have you actually asked if they want to take it on?
Jessica Jung has seen this assumption backfire many times. One founder planned to hand the company over to her son. When Jessica asked if he wanted it, the answer was no.
“They had never talked about it directly,” she said. “They were both carrying stress about an exit plan that was not even real.”
If family is part of the plan, treat them like any other leadership hire. Talk about roles, goals, and timelines. Do not guess, ask.
What to Do Now
Even if you are not ready to sell tomorrow, you should start moving in the right direction today. Here is how:
1. Write Down Your Exit Year
Put it on paper. This creates focus. Once you name the year, you can reverse engineer the steps to get there.
2. Review Your Ownership Documents
Are your shares or membership interests correctly titled? Do you have a buy-sell agreement? Can the company survive if you become unavailable?
3. Get Your Books in Shape
Separate personal and business finances. Clean up your P&L. Get ahead of due diligence before a buyer ever asks.
4. Talk to a Financial Planner or CPA
Ask them what tax strategies are still available to you. And what opportunities expire if you wait too long.
The Cost of Waiting Is Real
Planning an exit as a business owner does not have to be complicated. But it does need to start early.
An unplanned exit usually leads to a rushed decision. A rushed decision often means giving up control, value, and peace of mind.
You have spent years building something great. You owe it to yourself and your family to leave on your terms.
Set the date. Build the structure. And make sure the next chapter starts with intention, not panic.
