Starting a small business is hard. Exiting can be even harder, but planning early is the key

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Small business owners say it’s best to have a plan well in advance of making a big change like ceding a business to someone else.

FILE – A customer sits for a shoe shine at a shoe repair shop on Feb. 3, 2023, in New York. NEW YORK — Starting a small business is hard. Figuring out what to do with a small business when an owner is ready to retire can be even more difficult.

His manager, Traci Burnes, helped steer the company through the pandemic, during a fraught time when they could have shuttered, by figuring out how to retain employees and stay afloat during the shutdown. About 51% of small business owners are over the age of 55, according to the U.S. Census. Given that most people in the U.S. retire in their 60s, that time will soon be coming up for many owners.

Settling on the right plan can take time. Taylor Trapani’s mother started Trapani Communications in Midland, Michigan, in 1994. They started working on a succession plan five years ago. Taylor took over the business in January of this year. Finally, an owner should be transparent with employees and clients so they aren’t surprised or upset when the change occurs.

 

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