Majority of Small Business Owners Rely on Their Businesses to Fund Their Future, New Survey Finds

Research reveals 57% are highly reliant on their business to reach their next stage of life, despite significant gaps in exit planning and valuation

WEST PALM BEACH, Fla., Oct. 15, 2026 /PRNewswire/ -- For many U.S. small business owners, their financial future depends heavily on the businesses they've built, yet new research reveals significant gaps in the planning and preparation needed to support a successful exit.

According to a new national survey conducted by Researchscape International on behalf of Exit Factor™, a business value enhancement and exit planning company, 57% of small business owners say they are very or completely reliant on their business, either through selling it or continuing to draw income from it, to reach their next stage of life. Nearly two-thirds (64%) also report having at least half of their personal net worth tied up in their business.

Despite that financial dependence, many owners have yet to take concrete steps to prepare for an eventual exit. While 52% say they are very or completely confident they could successfully exit their business if they needed to start the process tomorrow, one-third (33%) have taken no steps toward exit planning, only 23% have formally valued their business as part of their exit preparation, and just 18% have established a written timeline or target exit date.

The findings are part of Exit Factor's national survey of 1,104 U.S. small business owners, examining how entrepreneurs approach business value, exit planning, succession and life after ownership.

"Business owners spend years, often decades, building something valuable, but many don't give the same attention to how they'll eventually step away from it," said Peter Giese, president of Exit Factor. "Exit planning isn't about deciding that you're ready to sell tomorrow. It's about understanding what your business is worth today, identifying the factors that could increase or limit that value, and creating options for yourself long before you need them."

Financial Dependence Outpaces Exit Preparation

Despite the significant role their businesses play in their financial futures, many owners lack a clear understanding of what their companies are worth or a formal plan for an eventual exit. The survey reveals several gaps between financial reliance, confidence and actual preparation:

• Only 18% have a current professional business valuation they paid for, while 27% rely on their own rough estimate of their business's value.
• 28% have thought about exiting but haven't taken any steps, while another 26% have an informal or partial plan but nothing formal or written.
• 18% haven't thought about exit planning or aren't sure where they stand.
• Just 15% have a formal, written exit plan, while 13% are actively working with a paid exit planning advisor.

The findings underscore the potential risks of relying heavily on a business without fully understanding its value or having a strategy for transitioning ownership, particularly for owners who may depend on a sale or continued business income to support their next stage of life.

"When so much of an owner's financial future is tied to one asset, waiting until you're ready to sell to understand its value can leave very little time to address the issues that affect that value," Giese said. "The earlier owners understand where they stand, the more opportunity they have to strengthen the business and make decisions on their own terms."

For Many Owners, Exit Planning Still Feels Like a Problem for the Future

While financial readiness is a critical component of a successful exit, the survey also highlights the practical and emotional barriers that can prevent owners from planning ahead. Key findings include:

• 47% say it feels too early to think about an exit, while 29% are too busy managing day-to-day operations.
• 25% cite the emotional difficulty of letting go as a barrier to exit planning.
• 44% say uncertainty about who they would be or what they would do without their business has at least somewhat affected their planning.
• 45% say a health issue or scare would prompt them to begin or accelerate exit planning, followed by reaching a specific age or life milestone (35%) and experiencing burnout (32%).

The emotional ties to business ownership extend beyond planning. When asked what they would miss most about stepping away, owners ranked their sense of purpose or daily meaning highest overall, ahead of financial security and income.

"An exit is both a business transition and a personal transition," Giese said. "Owners need time not only to prepare the company, but to think through what they want their next chapter to look like. Starting earlier gives them the ability to build a business that can operate without them while also preparing themselves for whatever comes next."

To learn more, explore the findings from Exit Factor's The State of Exit Readiness study.

About the Survey
Researchscape International conducted an online survey of 1,104 U.S. small business owners on behalf of Exit Factor between August 24 and September 11, 2026. Respondents were sole owners/founders or co-owners with significant decision-making authority at businesses with 1–99 employees. Responses were not weighted.

About Exit Factor
Exit Factor® offers a proven method that helps small to mid-size business owners maximize their company's value. It's part of the United Franchise Group™ (UFG) family of affiliated brands and consultants representing the best of their industries. Through one-on-one consulting services and online programs, the trusted advisors at Exit Factor teach entrepreneurs how to successfully improve their company's efficiency, value and ultimately ability to exit. Following its franchise launch in 2024, the company was ranked #1 in the business coaching/services category on Entrepreneur's 2025 Top New & Emerging Franchises and was also named among Inc.'s 2025 Best Workplaces and 2025 Power Partners. In 2026, Inc. named Exit Factor to its list of Fastest-Growing Private Companies in the Southeast and founder Jessica Fialkovich to its Female Founders 500. For more information, visit www.ExitFactor.com and for more information on owning an Exit Factor franchise, visit www.exitfactorfranchise.com.

About United Franchise Group
Led by Chairman and CEO Ray Titus, United Franchise Group™ (UFG) is a globally recognized leader in franchising, home to an award-winning family of brands and franchise consulting services. With over 1,800 franchises and development in more than 60 countries, UFG empowers entrepreneurs through proven franchise systems, multi-unit growth opportunities, and industry-leading support. Its portfolio includes iconic brands like Signarama®, Fully Promoted®, Black Optix Tint®, Transworld Business Advisors®, Exit Factor®, Accurate Franchising™, Franchise Real Estate™, and thriving food concepts, The Great Greek Mediterranean Grill® and Graze Craze®. With 40 years of franchising experience, UFG and its expert consultants have helped develop over 350 successful franchise brands, supporting thousands of franchisees worldwide. From B2B services to fast-casual dining, UFG offers scalable, high-demand business opportunities backed by comprehensive training, marketing, and operations support. Entrepreneurs choose UFG to lead in their local markets and grow with a trusted network that's driving the future of franchising. With a commitment to rapid growth, UFG continues to expand its global footprint, helping franchise owners thrive in local markets worldwide.

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SOURCE Exit Factor