How Does Exit Planning Work for Small Business Owners?

Most small business owners don’t sit down one day and formally decide to start exit planning. It usually starts with a passing thought — maybe you’re feeling tired, maybe someone asks what the business is worth, or maybe you realise you don’t want to be doing this forever.

If you run a small business, particularly in manufacturing or another hands-on industry, exit planning often feels like something for “later”. The problem is that it arrives later than expected. Unfortunately, poor health can deal a cruel blow to business aspirations. Before you know it, you want or need to retire, but it’s always been tomorrow’s problem.

Exit planning for small business owners is really about being prepared. Not prepared to sell tomorrow, but prepared so that when the time feels right, you actually have choices.

Plan to exit with Value and control

Exit planning is about you! In many cases, it is turning a business that relies heavily on you, into one that stands on its own. Many owners are not aware that potential buyers aren’t just looking at profits. They’re looking at risk. If the business can’t function without the owner, its value declines—sometimes dramatically. This is also where risk is prevelant with one supplier or customer.

This is especially common in manufacturing businesses. Owners often possess deep operational knowledge, long-standing supplier relationships, and an instinctive understanding of how the factory operates. While that experience is invaluable, it can make the business harder to sell unless it’s properly documented and shared.

A good exit plan usually starts with the owner, not the business. Questions like “When would I like to step back?”, “Do I want a clean exit or a gradual transition?” and “What do I actually need financially?” shape every subsequent decision. Without this clarity, it’s easy to grow a business that doesn’t suit the life you want next.

From there, the focus shifts to understanding the business’s true value. A proper business valuation often surprises owners. It highlights not just what the business is worth today, but what’s helping or hurting its value. In a manufacturing business, this can include reliance on a small number of customers, informal systems, ageing equipment, or margins that haven’t been reviewed in years.

A systematic exit approach

Exit planning then becomes a practical process of reducing risk and strengthening the business. Systems that are documented, responsibilities are shared add business value . The business becomes less dependent on the owner’s daily involvement. At the same time, attention is given to consistent performance — not just one good year, but a track record that gives buyers confidence.

So what do we mean by value?

Value, and in your case, as part of your planning, is the additional 

Choosing the right business exit strategy is another key part of the process. Some owners sell outright. Others transition ownership to family or management. Some sell part of the business and step back gradually. The right approach depends on the owner’s goals, the industry, and the business’s structure over time.

Tax planning is one of the most important — and most overlooked — elements of exit planning. With sufficient lead time, small business owners may be able to access small business CGT concessions, restructure ownership, or plan super contributions in ways that significantly improve the final outcome. These opportunities rarely exist if planning starts too late.

A well-planned business exit – working through your future needs, your legacy, the business, including employees, customers and suppliers

A well-planned exit also considers what happens after the business is sold or handed over. Many owners underestimate the extent to which the business shapes their identity and routine. Exit planning should support not only the transaction but also the next stage of life.

In the end, exit planning isn’t about locking yourself into a decision. It’s about staying in control. Exit planning enables small business owners to exit on their terms, rather than being forced out by health issues, burnout, or other circumstances.

Whether you’re running a manufacturing business, a trade, or a professional firm, starting exit planning early almost always leads to a better result — even if you don’t plan to exit for years.

A Gentle Next Step to begin your exit journey.

If you’ve ever caught yourself wondering “What would happen if I stepped back?” or “Is my business actually ready to sell?”, that’s usually a sign it’s time for a conversation — not a commitment. A short, informal discussion can often clarify where your business stands today. A discussion on what is worth considering next. Even if an exit is years away, understanding your options early can make a meaningful difference. We recommend starting with a review of the business.

Our free valuebuilder report is a great way to address some of those issues.

Find out how you score on the 8 factors that drive your company’s value and an action plan for how to improve your score on each by completing the Value Builder Score assessment. 

We are often asked, well, what do we do with our score? Your valuebuilder score outlines the 8 factors that drive your business. From here, a meaningful discussion around the report, your exit planning journey and in particular, we can focus on :

• Increase your score on each of the eight drivers of company value.
• Structure your business to maximise its value.
• Accelerate the pace of growth, value and exit planning

Sometimes, the most valuable part of exit planning is simply knowing where you stand and drawing a line in the sand. May 2026 be your year for you, the business and family by starting the conversation and planning.