If you are thinking about going into a small business make sure you get things in order.

Step 1:

Have a plan for getting out of business. This is important because it will effect how you run the business.

If your plan to get out of business is “shut it down and declare bankruptcy”,  your day-to-day decision process will be totally different than if your get out of business plan is “create a business worth $1,000,000… sell it and go to the beach.”

If you have a business partner you need a plan for you and your partner to get a divorce without killing your business. How does that work? Get a buy/sell agreement that is sensible, logical, definable and finance-able. How will you buy out your partner (or how will he buy you out)? Get a small business loan? Write a check? Give him a note? What if you or your partner gets hit by a truck? Do you want the spouse or kids as a partner? Have a plan even though you hope you don’t need it.

Step 2:

Make certain you’ve got Step 1 done very well.

Every business owner leaves their business at some point, every single one. Think about the end of the game before the end game is here.