Now Is the Time to Think About Your Small-Business Succession Plan

More than 50 percent of all small-business owners are 50 or older, according to the U.S. Small Business Administration. That means many of America’s 28 million small-business owners are coming to that point in their lives when they need to think about a transition for their businesses.

A survey earlier this year by CNBC and the Financial Planning Association found that while 78 percent of small-business owners intend to sell their businesses to fund their retirements, fewer than 30 percent have a written succession plan. That’s not a recipe for success.

The 6 Types of Buyers for Your Business

There is a reason it’s called exit planning -- the steps involved in determining how to ultimately leave the company you’ve built require careful thought, deliberate consideration, and plenty of time.

There are many directions you can take in the sale of a company, and considering who you’ll eventually find at the other side of the negotiation table is one of the most important things to understand as you get started down the path to an exit.

There are six common buyers you will likely encounter as you market a business for sale. As each have differing priorities and represent unique outcomes for the business, educating yourself on each buyer type is one of the first steps in beginning to plan the sale of your company.