Whenever I talk to small business owners, I try to learn about their goals for the future. What kind of sales increase to they expect to see? What major purchases do they want to make? Will they move their office or hire more employees? Most of the time, a business owner has answers to all of those questions. But when I ask "What's your exit strategy," it usually results in silence. I might as well ask, "Have you filled out your will yet?"

As uncomfortable as it may seem, every business owner should have an exit strategy - a way out of the business. In an exit strategy, when a set of requirements are met (positive or negative), the business owner has a specific plan that goes into effect to leave the business behind. Some examples of requirements might be reaching retirement age, achieving a certain revenue or cash flow, becoming sick or injured, losing money for a certain amount of time, or finding another venture. Whatever the requirements, here are five basic exit strategies for you to start with. Forming the detailed plan will be up to you.

Close the doors and walk away

I figured I would start with the plan that sounds the least fun. Sometimes, if the business is not making money or you are no longer willing or able to operate the business, closing the doors is your best bet. If your business is very small, you don’t owe anyone money, and selling doesn’t make sense, this may be your best option. Remember, though, even with this plan, you still need to fill out the appropriate paperwork and tie up the loose ends.

Liquidate.

If your business is not making money, and you are failing to meet obligations to your creditors, it may be time to sell everything and start paying people what is owed. You can use a service to do this, and they will get it done quickly, or you can do it yourself over a longer period of time and save some commissions. Whatever the case, if your business owes money, the proceeds from the liquidation belongs to the creditors. If you don’t owe anyone any money, this may still be the most convenient option for you if selling the business outright doesn’t make sense.

Sell.

This is what most people think of when it comes to an exit strategy. Selling your business may be the best way to reap the rewards of all your hard work. If you have started a business from scratch and built it to one with several employees and a decent cash flow, you might be surprised at how much your business is worth. With this option, you should, at the very least, use an expert to determine the value of your business. By using experts, you can determine ways to prepare you business for sale by increasing cash flow, cutting costs, etc. Even better would be to use a broker to sell your business. While it can be done on your own, the commissions charged by a broker are more than made up for by the quicker sale time and increased sale price.

Hand the business down.

So, you own the hardware store on the corner that your dad owned and his dad owned before that. Now you want your son to have it. Well, there is a process to handing a business over to a new owner, and you should still have a plan in place. And, you may want to find out if the person really wants the business. If not, the entire family may be in for a world of trouble when the new owner doesn’t share the same love, care, and attention to detail that you did. If all goes well, though, handing a business over to a family member or friend can be a rewarding experience. You will be more comfortable knowing the person is taking care of your years of hard work and investment.

Milk It!

This option can be the most fun. Basically, you cut the business down to something you can comfortably manage, and take as much cash as possible. Instead of using money for more advertising, sales trips, new hires, or new equipment, you keep the money! Raise your salary, give yourself a bonus, and take an extra vacation. This will make the business worth less in the long run, but it puts money in your pocket now. New rule: Everyone that owns at least 51% of this business gets a company-provided Lexus! Please, be careful to understand and obey all applicable tax laws.

These are only five options, and there are more. What is important is that you decide to take a look at where your business and you are headed, and when you need to part ways. How you do it is up to you.