Majority of small businesses lack an exit strategy

New data from Australian business organisation My Business reveals that more than half of small-business owners do not have an exit strategy in place. The information comes from its Recipe for Success Survey, which involved nearly 2000 Australian business owners,

The report also found that of those that did have a strategy, 41 per cent plan to sell their business to another organisation, 20 per cent plan to leave it to a family member and 15 per cent intend to eventually close down.

Richard Spencer, Chief Customer Experience Officer at My Business, said that it’s important to map out a business exit strategy – even if you’re not planning on leaving anytime soon.

“The survey tells us 59 per cent of respondents don’t have an exit strategy and even more (75 per cent) didn’t have one before starting their business,” Spencer said. “Without a clear plan for how you will steer the business, and eventually wind up your involvement, you may end up selling the business for less than it’s worth.

“The whole process can also end up being a lot harder than it needs to be, often business owners are left scrambling to get things in order,” he added.

The survey also found that small-business owners have a greater appetite for risk than the general public and were also more inclined to be both goal-oriented and self-motivated, as well as a commitment to lifelong learning.

Another insight revealed in the report is that majority of small-business owners are female, aged between 34-44 years old and nearly half had been in business longer than five years.

“We undertook the survey to gain more insight into what attributes makes a successful businessperson so we can empower other owners on their business journey and focusing on continued development and constantly learning, growing and adapting are key to success,” Spencer said.