How prepared are you when it comes to exiting your business? A new study by the Center for Women’s Business Research and Massachusetts Mutual Life Insurance suggests that contrary to common perception, women are just as likely as men to have a long-term strategy for leaving their business.
Still, women and men have different considerations when it comes to saying goodbye. While both genders are equally motivated by the profitability of a sale, 72% of women business owners are concerned about the buyer’s identity, personality and background as well as their plans for the business, compared with 39% of men.
“Given that women are more likely to create a business than to take over an existing one, they likely have a greater sense of responsibility about their people’s future and the company’s continued success,” says Susan Sweetser, MassMutual’s second vice-president of specialized markets.
And while just as many women as men owners plan to sell their business (39%), pass on the business to family members (21%) or close the business (4%), women business owners are nearly twice as likely as men pass the torch to a daughter or daughters (37% versus 19%).
Still, they won’t all be sailing off to retirement. Some 22% of women surveyed intend to own a new business in the future, reflecting an upward trend that is seeing women in their 50s launching businesses after a successful corporate or entrepreneurial career.