"Begin with the end in mind," says Stephen Covey bestselling author of, "The Seven Habits of Successful Living."

Studies show that 90% of business owners report that their business is their single largest asset.  Yet, according to the Small Business Administration, an estimated 80% of business owners are ultimately unable to sell their businesses when it comes time to retire.

To build a successful business that also creates value; you must plan to successfully transition your ownership at some point.  This means addressing the "Four D's" that can dramatically affect your ownership transition strategy.

The Four D's in Ownership Transition Planning

Death: The issue of how the business will continue in the event of a business owner should be considered during the start-up of a business.  It also needs to be addressed each year and talked about openly with senior management.

Disability: Disability rather than death is the end of many businesses. Business survival may require that the disabled owner no longer receive a salary or other compensation. If a key person becomes disabled, his or her loss can be devastating to the business.  The loss of income to the disabled owner can also be devastating to the owner's family who depends on his or her income.

Divorce: A surprising number of businesses each year fail due to divorce.  Divorce can take many forms - the divorce of spouses and the divorce of business partners.  How can the owners dissolve their relationship with a spouse or partner without financially ruining each other or the business? This subject should be carefully thought out during the business planning stage and addressed each year in the form of an updated buy-sell agreement.

Departure: Your business may be booming and you may be having a great time, but your partner may decide to pursue another opportunity or simply retire. Who is going to do the work? What will you owe the leaving partner? Where will the money coming from? These are all important considerations for your business exit strategy.

A Fair Buy/Sell Agreement Can Be a Good Solution

For a business owner each of the four D's presents special demands on his or her family, income, taxes, and assets. An agreement, commonly called a buy-sell agreement, can be a very effective way to address the Four D's. Spend a little time and money now to craft a good buy-sell agreement and avoid surprises and emotional and financial upset later.

Creating an Ownership Transition Strategy

Once you understand the Four D's, include the following actions in the creation of your business exit strategy:

1) Find a good method to determine the value of your business that can be done annually and that everyone involved can agree upon.  This should be spelled out in your buy-sell agreement.

2) Develop an employee compensation plan using insurance that can ease the financial burden on the company in the event of the departure of a partner due to death, disability, or retirement.

3) In the event of a divorce, establish a fair mechanism to determine who retains company ownership and who gets paid off and how.  Again, this should be spelled out in your buy-sell agreement.

It's the American dream to build a business of your own, make it successful, and grow rich in the process. You may be able to do the first two easily, but how well you think out your exit strategy will determine your financial success. Starting a successful business takes planning, hard work, and a little thought - so does leaving it.