2025: Is This the Year You Start Planning Your Exit?

When Should You Start Planning Your Business Exit?

Exiting your business is one of the most significant milestones in your professional life. Yet, many business owners find themselves unprepared, scrambling to maximize value or rushing through the transition.

The truth is, a successful exit doesn’t just happen—it’s the result of thoughtful preparation and starting early. But how far ahead is "early enough"?

The Case for Starting Now

Here’s the thing: the earlier you start, the more control you have. Why? Because effective exit planning is about more than just finding a buyer. It’s about building a business that’s attractive, profitable, and transferable.

• From a Business Perspective: You need time to optimize your financials, document processes, and make your company less reliant on you. These are the factors that boost your business’s value.
• From a Personal Perspective: Your exit isn’t just financial—it’s emotional. Transitioning your identity from "business owner" to your next chapter is a journey. Starting early gives you space to plan for your legacy, align family priorities, and define what’s next.

Did you know? Only 20–30% of businesses listed for sale ever sell. Starting early drastically improves your odds.

Reverse-Engineering Your Exit Timeline

Use this framework to plan your exit strategically:

5+ Years Out

• Start succession planning if you’re passing your business to family or employees.
• Optimize financial metrics like profit margins and EBITDA.
• Reduce your business’s reliance on you by delegating key responsibilities.

3–5 Years Out

• Get a business valuation to understand your starting point.
• Conduct a mock due diligence process to uncover red flags.
• Fine-tune your operations and identify any process gaps.

1–3 Years Out

• Formalize your exit strategy with your advisors (CPA, attorney, broker).
• Identify potential buyers or successors.
• Set timelines for the transition of leadership and ownership.

Final Year

• Negotiate the sale or finalize succession details.
• Execute the transition plan, including knowledge transfer and formal goodbyes.

A Tale of Two Business Owners

Let’s compare two owners:

1. Lisa started planning her exit five years out. She optimized her finances, found a successor, and sold her business for 25% more than its initial valuation.
2. Mark waited until the last minute. He rushed to find a buyer and sold at a 15% discount due to weak documentation and unclear processes.

Lisa’s story is proof that time is your greatest asset.

The Next Step is Simple

Your timeline starts with defining your goal. Ask yourself:

• When do I want to exit?
• What legacy do I want to leave behind?
• How much do I want my business to sell for?

Start Today

Planning early means more time to build value, smooth the transition, and ensure your goals align with your legacy.

Ready to map out your exit strategy?

Message me on LinkedIn or email me [email protected] to get your free Exit Timeline Template and take the first step toward a profitable and stress-free transition.