Exit plans and succession plans may appear at first glance to be the same thing. They are similar and every business needs a plan to address both issues.
The biggest mistake business owners make is they ignore the reality there will be an ‘exit’ of the business owner from the business. It is not ‘if’ there will be an exit. It is when will there be an exit. It is will the exit be according to a predetermined plan or will the business and/or the family of the business owner figure out the details as they work thru a myriad of other emotion packed details? If not an ‘exit’ will the owner will hand off the business to a ‘successor’?
Planning for either of these requires strategic planning based on significant thoughts about the future of the business and the future of the business owner.