It is often beneficial to begin planning for an exit early in the life of the company.

 Whether the goal is to go public, be acquired by Google quickly, or pass on the family business to children, early planning will assist founders structure their business to achieve their desired outcome.

Here are some of the reasons why people exit.

1.UNCERTAINTY IN THE MARKET

• Because of apprehension about future market developments, successful business owners may decide to cash out.
• If you sell in the luxury market, your target consumer may have less disposable income to spend on the products during a financial crisis.
•  Changes in industry regulations or government policies can have a negative impact on a company.
•  In another scenario, a competitor enters the market and poses a threat to your business model.

2. FAILURE IN BUSINESS

•  If you continue to lose money despite trying a variety of strategies to stabilise the business, it may be time to call it quits.
•  If you are several years into your enterprise and still have no traction; customers still react to your sales pitch with a blank stare, quitting might be a wise decision.
•  Continued operations may result in additional losses, further depleting your net worth.

3.ROUTINE ANNOYANCE

•  Many entrepreneurs start their own businesses because they are dissatisfied with the routine of a 9 to 5 job.
•  You are motivated by innovation, by amazing new fields, by striking out on your own and doing something different every day if you are this type of entrepreneur.
•  This personality type is likely to become agitated and bored if your business reaches the point where the business model has been proven and it is simply an operational challenge.
•  After all, you started your company to do something exciting, not to work for yourself!
•  Consider selling your business and rediscovering your passion in a new field.
•  You might even have a new business idea that came to you while your current company was expanding.
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4.EXHAUSTION

•  Many entrepreneurs face financial insecurity, deal failures with investors or customers, and constantly shifting business models.
•  The more innovative your business idea, the less likely it is that the average person will relate to you; feelings of solitude are not uncommon.
•  These are long-term conditions that have a negative impact on mental health.
•  Depression and anxiety are the most common.
•  Stress is a major contributor to both of these illnesses, and some entrepreneurs choose to exit their businesses to avoid completely burning out.

5.CHANGE IN LIFESTYLE

•  Perhaps your business no longer fits your current lifestyle.
•  There could be various reasons for this:
•  You may have achieved financial success and desire to enjoy the rest of your life.
•  You may have started a family and prefer to spend time with them rather than working 60-hour weeks.
•  You might have taken up a new hobby or regained an old one.

 Finally, as you begin to physically slow down, it is obvious that you would want to sell your business in order to focus your energy on your family rather than work all the time.

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