We heard a story recently that has been stuck in our heads ever since.
A business owner was asked the question we ask all the time:
“What would happen if you got hit by the proverbial bus?”
Before he could answer, his wife quickly spoke up.
“I’d just shut the business down.”
What a shame.
Sometimes this kneejerk reaction is understandable, especially for spouses who aren’t involved in the business, but this one was!
Shutting down would be a shame because this isn’t a struggling company. It’s a successful business with loyal customers, great employees, and real value. If something happened to the owner, there would likely be buyers interested in acquiring it. The employees keep their jobs. The customers continue being served. The owner’s family could realize the value they spent years building.
Instead, their first thought was simply to close the doors.
What happens to your business if something happens to you?
Business owners spend years building a successful business. Few spend time thinking about what happens if they’re suddenly unable to run it.
There’s always another customer to meet, another employee issue to solve, another fire to put out. Always something else that feels more important than thinking through what we call a ‘hit by a bus’ plan.
Would your family know what to do?
If you weren’t able to come to work tomorrow, would your spouse or family know that selling the business is even an option?
Would they know who your trusted advisors are?
Would they know who your key employees are?
Would they know where to find the information a buyer would need?
Or would they simply assume the business couldn’t continue without you?
These aren’t easy questions, but they’re incredibly important ones.
Exit planning isn’t just about retirement.
When people hear “exit planning,” they usually picture someone who’s ready to retire.
Good exit planning isn’t just for retirement. The goal is really simply to protect what you’ve worked so hard to build. It’s about creating a business that can continue to have value even if life doesn’t go according to plan. It’s a business that can continue on without you.
And as a bonus: the work that makes a business easier to sell also tends to make it easier to run. Better systems. Better documentation. Stronger leadership. Less dependence on the owner.
So, these improvements won’t just help someday: they help today.
One conversation could make all the difference.
Here’s our simple challenge to you:
Tonight, ask your spouse or the person who would handle your affairs one question:
“If something happened to me, what do you think would happen to the business?”
Their answer may tell you everything you need to know.
If it sounds anything like, “I’d just shut the business down,” it’s time to start making a plan. You’ve worked too hard to let years of value disappear when it doesn’t have to.
That’s what exit planning is really about.
If you’re ready to make your ‘hit by a bus’ plan and need some guidance, that’s what we do. Give us a call at 573-335-1885.