Fill in the Blank Exit

When I get that "When should I plan my exit?" question, I think most would guess the right answer. An answer like "in the beginning" or "when you write your first business plan" or "when you started your business" are along the lines of the right answer to that question.

Your exit plan is part of your succession plan. Succession planning ties your personal and business "why" to life after your business, personal finance, and how you exit your business. Without these elements, your succession plan and your exit strategy is about as valuable as that ream of paper you used to print out your plan.

When I teach university Entrepreneurial Finance classes, I start with personal finance for founders on purpose, and it's weaved throughout the course. Why? Because personal finance is also part of the succession plan. It's part of your exit strategy.

When an exit strategy doesn't work, your succession planning SMART goals should still be relevant. That's the test.

The "who" of your exit strategy can range from a key employee, a group of employees such as your leadership team, all your employees (such as an ESOP, workers cooperative, or employee ownership trust) to a customer, vendor, supplier and competitor to a strategic buyer such as a family investment firm or a private equity group.

That's what's not the most important decision in your succession plan, however. Your "why" will determine the "who." And your "why" has been relevant even before you had the idea of starting your current company.

What has or has not worked for you in your succession planning and with your exit strategies?

Feel free to comment below.

ryan

Ryan Kauth

Ryan Kauth is a business coach for established founders and family business owners. He is also a fractional executive, university lecturer, technical advisor, and board member. His calendar is open for discussions on challenges related to Grow | Exit | Other.