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Every contractor leaves his or her business eventually. But will you sell your company on the open market, or transfer ownership to someone you choose? A smooth business transition requires a clear exit strategy well in advance of your planned departure date.

First, assemble a team — accountant, lawyer, estate planner, insurance expert — to help you achieve your goals.

To get the best price, you should probably sell on the open market. Competitors, related trades or larger firms eager to penetrate your area are all potential buyers. To show them your best side, conduct a comprehensive business valuation and then make improvements to increase your company's value.

If you transfer the company to family or employees, you’ll want to give them benefits while safeguarding your own. Allocating non-voting shares to employees or key management, for example, can allow them to participate in the profits of the company while you retain control.

Your own interests must be the top priority. For many contractors, their company is their only significant asset. If you’ll depend on deferred compensation, build the company and its culture so it will generate profits after you’ve left — including enough cash to pay its obligations to you in retirement.

Also, think about how much influence you will want to retain after you’ve left. Set a firm date for leaving, communicate it to everyone and put the company on course for a smooth transition.

If the trade you’ve devoted your life to appeals to your children, let them make their own way for a few years outside before bringing them into your company on an ownership track. Or, if they’re not inclined toward contracting, you can still pass on benefits of ownership without giving them day-to-day control over the business.