How to Prepare When Your Business’s Exit Is Your Future: Retirement Plan For Business Owner

Like many entrepreneurs, John poured everything into his business, his time, energy, and money. It wasn’t just his job. It was his legacy, his identity, and most importantly, his nest egg. His business was his retirement plan. And yet, like many business owners, he hadn’t taken steps to turn that into a reality.

If that sounds familiar, you're not alone. Creating a retirement plan for business owner paths isn’t always simple. It’s easy to put off, especially when you're focused on daily operations. But the earlier you start thinking about your future, the more options you’ll have and the better prepared you’ll be to retire on your own terms.

As a business owner, why should you care?

Nearly 75% of small business owners plan to sell to fund their retirement, but only 20% have a written exit strategy in place.

That gap leads to a familiar pattern: owners wait too long, feel overwhelmed when the time comes, and either sell for less than they hoped or can’t sell at all.

Sound familiar?

• “I know I should prepare, but I don’t even know where to start.”
• “Everything in the business runs through me. How would someone else take it over?”
• “What if I’m not ready emotionally... or financially?”

These thoughts aren’t rare. They’re common…and solvable.

In a recent conversation we had here at SMB.co, one retiring owner put it perfectly:

"My family has been in the plumbing business for over 100 years. I'm a third-generation contractor. Our name has instant name recognition in the city. I don't have any kids, and the ones that are family are going into different fields."

He had a strong business, deep roots, and legacy. But, unfortunately he had no clear plan for what came next.

A retirement plan for business owner: where should you begin?

• Start early. Even if you’re not planning to sell right now, small steps today can add major value later.
• Think beyond the numbers. A business that's easy to take over is worth more. Build systems, document key processes, and delegate where you can.
• Separate you from the business. If it only works when you're in the building, buyers will see risk instead of opportunity.
• Get a sense of value. A data-backed estimate (like our Bestimate) can help you understand what your business might be worth—and where there’s room to grow.

Planning your exit isn’t about letting go. It’s about protecting what you built and making sure it’s ready for someone else to carry forward.

Is your business ready to sell?

You don’t need to sell tomorrow. But you do need to start thinking like someone who might.

Here’s a simple gut-check:

• Do you know what your business is worth?
• Could it run without you for 3+ months?
• Are your books clean and up to date?
• Do you have documented processes?
• Have you talked to a financial advisor about life after the sale?

Even 2-3 “no”s? That’s normal. And it means now’s the perfect time to start.

Starting early is the best way to protect your retirement plan for business owner strategy because a smooth, profitable exit doesn’t happen overnight.

Next steps (without overwhelm)

You don’t need a 40-page exit plan. Start small:

1. Get a valuation - even a ballpark helps.
2. Fix the obvious - clean up finances, document key systems.
3. Talk to someone - an advisor, broker, or even a peer who’s sold before.
   
   

The sooner you start prepping, the more options (and leverage) you’ll have later.

Your business is your retirement plan but only if you can turn it into real money. That takes planning, not perfection.

Start where you are.
Plan a little.
And take back control of what your future looks like.

Your business holds the key to your retirement, but unlocking its full value takes planning. Start small, take action today, and secure the future you’ve worked hard to build.

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