5 Strategies for Quitting Your Job… as an Entrepreneur You started a business, but now you want out. Here's how to resign from your day job when that day job is being an entrepreneur.
By Michele Meek
Opinions expressed by Entrepreneur contributors are their own.
The past two years have brought an unprecedented shakeout in the labor market. During what has been called the Great Resignation, Americans have quit their jobs in record numbers — more than 4.5 million in November 2021 alone, double the number a decade ago.
Meanwhile, the number of new businesses being created has been on the rise. According to the U.S. Census Bureau, more than 4.4 million new businesses were created in the U.S. in 2020 — the highest total ever on record, representing a 24.3% increase from 2019 and 51% higher than the 2010-19 average, according to data from the U.S. Census Bureau analyzed by the Economic Innovation Group. What's more, 2021 might have beat that record.
But what happens when some of those new business owners decide they too want to quit? How do you resign from your day job when your day job is being an entrepreneur? It's not quite as easy as giving your two weeks notice. So here are a few real-world strategies for how to quit that entrepreneurial gig you took on.
Sell it
The exit strategy many small business owners aspire to is acquisition. Selling your company can be appealing for a variety of reasons — it allows you to cash out and affords you bragging rights. Of course, after an acquisition, you might be required to stay on as an employee for a certain number of years, so if you're really wanting out, this might not be the ideal solution.
If a sale is your preference, then you'll need your business to have enough revenue, value and assets to be appealing to another company. A potential buyer could be a competitor, business partner or even customer, and you can find business brokers, accountants and attorneys in your area to help you facilitate a deal.
Related: Selling Your Business to a Business Partner
Hand it over
Sometimes, selling a small business isn't feasible — the assets or the customer base just aren't large or attractive enough. However, a small business that provides a modest salary for its owner might still be a worthwhile acquisition for someone. In a case like this, you might consider reaching out to your existing customer, client and partner base with a prospectus. Or you can open up a public call for proposals and see if there's anyone out there interested.
Shut it down
Like the Paul Simon song "50 Ways to Leave Your Lover," there are many ways to leave your business behind. And one of those is just to "slip out the back."
Closing up shop can be a heart-wrenching way to exit your business, but sometimes you need a clean break. Dissolution can be the most pragmatic plan, particularly in cases where debts outweigh the benefits of continuing onward. Of course, you'll still need to comply with any local or federal laws on the steps you'll need to take.
Lease it
If you can't find a buyer, and you're not ready to shut your business down, you might consider leasing either the business in its entirety or the rights to some proprietary asset. This option works well for those who might only need to step away for a period of time, and it can be a way to develop a partnership with another business that becomes invested in building revenue for your company. It also might lead to a future acquisition.
Donate it
Entrepreneurs might not realize it, but they also have the option of donating their business — or its assets. This could provide a win-win solution: It might be easier to find an organization willing to "acquire" a business for free, and if you donate your business to a charity or public foundation, you might be able to take a tax-deduction for your gift. You'll need to obtain an official appraisal of your business to be able to set the valuation, and there might be some out-of-pocket expenses like attorneys and accountants to facilitate the acquisition. But in some cases, this can be a unique path to finding a new home for your business when you're ready to move on.
Related: Ready to Quit Your Current Venture? Consider These 3 Questions First
Being an entrepreneur requires an investment of countless hours, and you have likely spent a good deal of energy and possibly funds launching, building and running your business. So when your "exit strategy" doesn't turn out quite the way you had imagined, it can feel like a huge letdown.
But keep in mind that twenty percent of small businesses close within the first year — and within a decade 70 percent have closed. Being an entrepreneur is tough, and it's important to know when it's time to walk away. There's no shame in moving on, if it's because you're reading to head back into the workforce, or maybe you're ready to embark on your next venture.
