Many business owners believe that they will 'exit' their business by 'selling' it.  They incorrectly believe this to be the ONLY way to exit a business.  This can prove to be an unfortunate misunderstanding, because typically the majority of a business owner's wealth is tied to his or her business, and a firm grasp of the many exit options can literally mean millions of dollars in additional wealth preservation.  

For business owners who understand that an 'exit' from their business could occur in many different ways, a world of possibilities opens up.  It therefore stands to reason that the initial step in forming an exit strategy includes learning the difference between an 'exit' from the business and a 'sale' of the business.  

An exit strategy considers aspects of a business transition that go well beyond the sale.  The process entails answering questions not only about your business and how much money you need to get from it, but also about what you are personally trying to achieve.  
 
When business owners 'sell' their business, they generally forfeit strategic and financial control to the buyer.  Control is generally a large issue for many owners, and keeping control of one's business (and destiny) is a driving factor in the day-to-day decision-making process.  The business owner who perceives 'selling' his or her business as the only option, will often do very little to prepare for the departure because of the fear of loss of control.  This is unfortunate because 'exit' options exist that allow an owner to maintain control AND begin to draw down the equity locked inside the business.
 
The following table illustrates the numerous differences between simply selling the business and developing an exit strategy:

 These combined differences make the larger point that an exit strategy can be accomplished over a longer period of time, without the time-sensitive influence and pressure that come from the 'sale' of a business.
 
A high-quality exit strategy will analyze the pros, cons and value of different exit alternatives and conclude with the one that helps the business owner achieve all of his or her business and personal goals within the desired timeframe.  Think of it as an advanced form of financial, retirement, insurance, estate, and business planning - all wrapped into one plan.
 
Business owners should consider working with a trained advisor to develop an exit strategy from their business and join the growing number of business owners who are learning that 'selling' is not their only option.