Do You Have an Exit Strategy? Retirement Planning for Studio Owners 

Last Updated on 7 October, 2025

Owning a studio is a life’s work, but every owner eventually faces the question: what happens when you’re ready to step away?

Retirement planning isn’t just about money; it’s about protecting your legacy, supporting your staff, and ensuring your clients continue to thrive. And if you need advice on creating your perfect exit strategy, our experts are here to help.

Key takeaways:

• Plan your exit early to protect value, reduce stress, prepare staff, and avoid last-minute surprises.
• Build a diversified retirement wealth portfolio with investments both inside and outside the business.
• Treat retirement as both a financial and personal goal, and find the balance that’s best for you.

Why your exit strategy matters

Building a successful business takes years of dedication, but many owners overlook a crucial element of their long-term plan: the exit. Whether you intend to sell, pass your company on to family, or simply step back, having a plan in place protects your legacy and your peace of mind.

A good exit strategy:

• Protects the value you’ve built. When you plan your exit, you safeguard your equity. You’re more likely to get fair value for your work, not see it slip away.
• Ensures continuity for clients and staff. Your clients and team depend on what you’ve built. A clear plan keeps services running and morale steady during transitions.
• Reduces stress and surprises when the time comes. Without a plan, exits can get messy fast. Planning ahead means fewer emergencies, fewer regrets, and fewer sleepless nights.

Exit paths

You’ve got three main options to exit your studio business: sell, transfer, or close. But the right choice for you will come down to the details. It could even fall somewhere in between.

Option 1: Sell the studio 

You might choose to sell if you’d like to see your studio continue, even without you holding the reins.  

The buyer typically takes on all assets and liabilities of the business, saving you the task of having to unload equipment and resolve vendor relationships as you would with closure. 

You have a few options to structure a wellness studio sale:  

• Outright sale: You transfer complete ownership to the buyer, who pays the purchase price in full immediately. This allows for a quick and complete exit.  
• Gradual sale: You transfer ownership and operational control to the buyer, but they pay off the purchase price over time. Also called an installment sale, this works if you can finance a monthly payment plan and want to reduce the tax burden of the sale proceeds. 
• Keeping a minority stake: You can choose to retain part ownership in the business while the buyer gets operational control and a majority stake. You might choose this option if you expect the new owner will grow the studio’s value over time. 

You’ll want to speak with a lawyer to help you negotiate and finalize a sale. If you run a larger studio or have multiple locations, think about using a business broker to help you find the right buyer.  

Option 2: Transfer ownership 

If you’d like to see a family member or employee take over the studio, you might transfer ownership. This can be structured as an internal sale, which looks a lot like selling to an outside party.  

Personal relationships can make negotiations challenging, but you can find a structure that works for everyone—like a gradual sale to a mentee who knows the company but can’t quite afford an outright purchase.  

If you want to transfer ownership to a family member, keep in mind estate and gift tax implications. In some cases, a sale might be a better option. A tax lawyer can give specific guidance.  

Option 3: Close the studio 

If you’re ready to say goodbye to your studio, you can wind up the business entirely. The basic steps to close a studio business are: 

• Discuss the timeline with your staff and clients
• File paperwork to dissolve your business legal entity (LLC, C-Corp, or S-Corp) 
• Cancel licenses, permits, and leases  
• Follow employment laws to issue final paychecks, severance paperwork, and payroll taxes 
• Resolve outstanding debts 
• Notify all relevant tax authorities and file final returns 
• Keep all business records 

The details of winding down depend a lot on where you’re located, so check out local chambers of commerce or business development resources for guidance.

Additional option: Hybrid approaches

You don’t always have to choose between staying and leaving. A phased retirement or partial sale lets you step back slowly. You might sell a minority stake or hand over daily operations while still guiding strategy. This option works well if you’re not ready to walk away but want less on your plate.

Retirement tax considerations for studio owners 

A business’s value often depends heavily on the owner’s presence. So it benefits you in the short and long term to create organized and clear management systems that others can step into. Preparing your staff and systems ahead of time shows how much you value them and the community your business has built.

The right decision for you will depend on both the needs of your business and your country’s regulations. For example, the U.K. has a targeted relief for business owners, while the U.S. has more general capital gains rules with limited special carve-outs.

Let’s examine how tax considerations break down in some of the world’s largest economies.

Tax considerations: How exits are taxed around the world

• U.S. Regulations: Relies on general capital gains taxes; provides no universal business-specific relief.
• U.K. Regulations: Simple rate, but capped and conditional. Targeted relief for businesses.
• Canadian Regulations: Generous lifetime exemption, but only for qualifying small business shares.
• Australian Regulations: Most flexible, multiple concessions tailored to small business owners.

Preparing emotionally for exits and retirement

It takes your full heart and soul to build a wellness business, so retiring might not come easily.  

You might fear a loss of identity and loss of work that gives you personal satisfaction. Retirement means relationships change, so you might mourn the loss of friendships built around your studio. 

If you have these feelings, you might still be ready to retire. But you might want to do some prep work: 

• Hand off operational responsibilities gradually to a senior member of your team 
• Plan to stay active in a role you love—like teaching classes or offering private sessions 
• Consider new endeavors like career coaching or business mentorship 
• Explore community involvement outside the studio 
• Connect with other retired business owners through support groups
• Talk with a therapist or counselor to guide you through the transition

By slowly moving away from your wellness studio, you can transition to a fulfilling life in retirement with a new identity. Don’t forget that you’re not alone; sharing the journey with others who’ve been there makes it easier to move forward and to celebrate the legacy you’ve built.

How to prepare early

A graceful exit doesn’t happen overnight. Laying the groundwork years in advance makes the process smoother and boosts the value of your business.

• Get a professional evaluation. An outside evaluation gives you a realistic picture of what your business is worth today and opportunities to increase value before you sell or transfer.
• Document SOPs, finances, and customer data. Clear records make your business easier to run and easier to buy. Standard operating procedures (SOPs), clean financial statements, and organized customer information reduce buyer risk and inspire confidence.
• Develop staff leadership. Training and empowering staff to lead ensures continuity, stability for your investments, and shows buyers the company can thrive without your daily involvement.
• Build a financial and legal advisory team. Accountants, lawyers, and financial planners are essential. They’ll guide you on taxes, contracts, and compliance and help you avoid costly mistakes.

Personal retirement planning 

Studio owners should ideally have personal retirement accounts separate from their business assets. This can give you flexibility when assessing your exit options, since you’ll have your own nest egg to rely on, too. 

Besides those investments, you can earn some passive income from the wellness studio even after a sale or transfer: 

• Create an annuity: Put the sale proceeds into an investment vehicle that pays out interest at regular intervals. 
• Keep a stake: A minority share in the business can become more valuable over time if the company continues to grow. But you’ll likely also be responsible for the studio’s liabilities. 

It’s always best to start early, but it’s never too late to look at ways to create income for your retirement.  

How much do you need? 

Exiting your business is only part of the picture. You also need to know what retirement will cost and whether your savings and investments can cover it.

Introduce benchmarks to your savings.

A common rule of thumb for retirement is to save about 3× your annual income by your 40s, and 10–12× by the time you retire. For example, if you live on $80,000 a year, you’d aim to have around $240,000 saved by your 40s and close to $1 million by retirement.

When you choose to retire also has a big impact. If you’re in your 50s, plan for 20 to 40 years in retirement. If you’re in your 60s, 15 to 30 years is reasonable.  

Many retirement guides discuss “salaries” in relation to retirement savings. As a business owner, your equivalent of a salary might be your owner’s draw, profit distributions, or a combination. Use the amount you consistently rely on to cover your personal expenses as the baseline for these benchmarks.

Example of a retirement savings timeline

Age	Savings Goal
30	1x annual salary
40	3x annual salary
50	6x annual salary
60	8x annual salary
67	10x annual salary

Benchmarks are just guidelines.

Your retirement needs depend on factors like your lifestyle, location, and healthcare costs. Think about where you want to live, what kind of activities you’ll enjoy, and how much financial cushion you’d like for unexpected expenses.

Debts, caring for older and younger family members, and whether you continue to earn some income from a share of the business, all ultimately influence how much money you’ll need. 

Don’t forget you might be eligible for some government pension plans, even if you’ve run a business most of your working life. This can give you access to a bit more cash in your retirement. 

Retirement savings vehicles for studio owners

Business owners don’t always have access to employer retirement plans, but you still have powerful tools to build your future. Here are some of the most common options by region:

United States

• SEP IRA: High contribution limits, easy to set up, employer-funded.
• Solo 401(k): Designed for one-person businesses; higher contribution room by combining employer + employee contributions.
• SIMPLE IRA: Lower limits than SEP or Solo 401(k), but less paperwork.
• Traditional / Roth IRA: Lower limits, but flexible tax advantages (deductions now vs. tax-free withdrawals later).
• HSA (Health Savings Account): If you qualify, funds grow tax-free and can be used for medical expenses.

Canada

• RRSP (Registered Retirement Savings Plan): Contributions reduce taxable income; withdrawals taxed in retirement.
• TFSA (Tax-Free Savings Account): No tax deduction upfront, but growth and withdrawals are tax-free.

United Kingdom

• SIPPs (Self-Invested Personal Pensions): Flexible, tax-relieved contributions with a wide range of investment choices.
• Workplace Pensions: Employer and employee contributions with government tax relief.

Australia

• Superannuation (“Super”): Mandatory employer contributions, with the option to add personal contributions. Tax-advantaged growth until retirement access.

Other essential building blocks

Retirement savings accounts are a powerful tool, but they aren’t the whole plan. Even the most disciplined savers need to plan for risks, rising costs, and the unexpected. A solid plan includes:

• Insurance. Disability insurance replaces income if illness or injury keeps you from working. Life insurance provides for your loved ones if something happens to you. Liability coverage shields your business and personal assets from legal claims. Together, these policies keep your retirement plan on track when life throws a curveball.
• Diversification. It’s tempting to see your studio as your main nest egg, but that concentrates risk in a single asset. Building wealth outside your business in real estate, retirement accounts, or a diversified investment portfolio spreads that risk. Diversification gives you flexibility and stability, regardless of what happens to your studio or your industry.
• Healthcare planning. Medical costs are one of the biggest variables in retirement. How much you’ll pay depends on where you live:
  • In the U.S., Medicare provides a foundation, but you’ll still need supplemental coverage and funds for out-of-pocket expenses.
  • In the U.K., the NHS covers most care, but private insurance can help with wait times or specialized services.
  • In Canada, provincial health systems cover many basics, but prescriptions, dental, and long-term care often require extra savings or insurance.
  • In Australia, Medicare and the public system cover a wide range of services, but many retirees add private insurance for more choice and reduced wait times.
• Government programs. Don’t overlook retirement benefits provided by your country. These programs aren’t enough on their own, but they’re an important piece of the bigger picture.
  • In the U.S., Social Security is a key income source for many retirees.
  • In the U.K., the State Pension supplements workplace and personal pensions.
  • Canada offers the Canada Pension Plan (CPP) and Old Age Security (OAS).
  • Australia’s Age Pension provides a baseline income for eligible retirees.

Think of it as a formula: Savings + business equity = financial independence. The more you save outside the business, the less pressure you’ll feel to sell at the “perfect” time.

Practical tips for studio owners

Retirement planning while running a studio can feel overwhelming, but it doesn’t have to be. The key is consistency and structure. A few smart habits, repeated over time, can make a big difference in your long-term security.

• Work with the right professional. Small business finances are unique. An advisor who understands owner’s draws, seasonal cash flow, and business valuations can help you craft a realistic plan. They’ll also keep you accountable to your goals.
• Automate contributions. It’s easy to put off saving when your to-do list is endless. Automating deposits into retirement accounts ensures steady progress, even if the amounts are modest. Think of it as paying your future self first.
• Plan for seasonality. Most studios have busy and slow seasons. Instead of pausing contributions during lean months, adjust the amount you save. This keeps the habit intact and reduces the risk of falling off track altogether.
• Stay flexible. Your needs, business, and market conditions will change. Review your plan regularly and make adjustments as your goals evolve. Small course corrections now prevent bigger problems later.

WellnessLiving makes management transitions a breeze

A smooth transition to retirement from your business starts with a well-executed exit strategy that prioritizes your needs along with those of your business. That might mean negotiating a Saturday morning yoga class so you can stay involved, a silent partner stake in the company, or making a clean break to start something completely new.

If you do plan on selling or passing along your business, WellnessLiving can support you every step of the way. Our client management software, booking systems, and in-depth reporting all help you instill your business practices into the day-to-day management.

You’ve supported your community for a long time; you deserve to spend time being supported by it as well. To see how WellnessLiving can help, reach out today to book a free demo.

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