How do you know when it’s time to sell your business? How do I determine my own exit strategy from my business?

For a lot of small businesses this begins to become a consideration soon after the business begins to get off the ground. Norm Brodsky, a contributor to Inc. Magazine hits on this topic in his column, ‘Ask Norm‘ in the July issue.  Brodsky, a successful entrepreneur, has been at the helm of six companies.  Norm’s advice in this column is helpful during a time when many small cap companies are hurting and troubled about their next steps.

I really enjoyed reading some of the answers he gave to the tough questions posed to him by a variety of business owners in varying stages of their businesses. One business owner complained of a situation where he was locked into a business that barely broke even, yet he was still able to pay the bills and steadily grow the business. There are a lot of these guys out there right now. Imagine the number of Boomers with marginally successful, yet growing, small businesses. How many of these business owners are anxious to come up with an exit strategy from these businesses?

Another business owner described his business as growing quickly and profitably, yet he was still concerned about when to sell.  I think that all business owners who are looking on the horizon for an exit, should take the time to read the answers that Brodsky published to this business owner’s question. Brodsky asks the business owner to ask himself the following questions:

1. What kind of life do you want 5 to 10 years from now?
2. What would you like to get out of a potential sale in terms of:
   1. Money you would get
   2. How your customers and employees would be treated
3. What do you want to do next? (this goes along with question #1)

By asking themselves these specific questions, I think most business owners can better plan for the future of their businesses and their own exits.