Are You Ready to Fire Yourself? Welcome to Stage 7 of Business Success.

When people start companies, they rarely think about exit strategies. After all, at the launch, the owner is worried about keeping the business afloat. They are doing everything they can to AVOID exiting. But eventually, every founder or business owner will think about what happens to the organization when they leave. Can it survive? Can other people run it? Can it be sold or handed off to the next generation?

In my 7 Stages of Business Success process, owners are encouraged to build teams around them to take care of a range of tasks and responsibilities. I encourage entrepreneurs always to be "firing yourself upward," handing off jobs to others, and firing yourself from more and more tasks as the enterprise grows and expands. Founders should strive to evolve into the visionary, the CEO, and the orchestrator, leaving the day-to-day jobs for other talented people.

But what happens when the business owner wants out? What if it's time to retire, or the kids are ready to take over? What if they want to sell or pursue other interests? A successful exit strategy means there is one more job to lose and one more hire to make. Owners must replace the CEO, in other words, fire themselves.

How Business is Like Rock and Roll

I think successful musicians are good businesspeople, so I like to look to the music world for examples. The Rolling Stones and Elton John are incredibly successful musicians and legends in the industry. But their popularity and sales slow considerably when they don't make appearances, or they stop touring.

Conversely, the Beatles and Elvis haven't toured for decades, but they are still among the highest-grossing musicians in history. And their music sales continue. So what do Elvis and the Beatles have that Elton and the Stones lack? Succession.

The Beatles and Elvis (or their estates or holding companies) stopped "owning" their music and started licensing or even selling the rights. Movies, television programs, and advertisements have used their music. Broadway plays, and other theatrical productions have been created and inspired by their legacies. They have empowered others to steer the ship (while they, their estates, or their descendants receive royalties). The music of the Beatles and Elvis Presley is now woven into every part of our culture.

While wildly successful, the Rolling Stones and Elton John remain musical acts.

Succession Starts Well Before the Last Day

A company's value increases as it relies less on its owner. That means that if a founder wants to create a company that lives on, they must develop systems. They must create a team of leaders to run it. They must create value that stems from the product, service, or experience instead of the CEO's vision.

In my 7 Stages of Business Success, I recommend owners complete these seven stages before exiting.

Stage 1: The Strategic Planning Stage

Whether the business started this week or ten years ago, it’s never too late to create a strategic plan. Once the plan is in place, it's much easier to move forward methodically.

Stage 2: The Specialty Stage

In this stage, companies develop expertise. They become known for a specialty and become the best at whatever they do.

Stage 3: The Synergy Stage

Running a successful business is a team sport. Owners build good teams and develop strong leaders to handle different parts of the company.

Stage 4: The Systems Stage

Companies develop repeatable processes, checklists, and evaluations that enable everyone to understand what to do and how to succeed.

Stage 5: The Sustainability Stage

With expertise, teams, and processes in place, it’s time to scale products, operations, markets, and expertise in ways that allow the firm to increase profits exponentially.

Stage 6: The Salability Stage

This stage helps owners prepare for an exit. They adjust the business in ways that make it a profitable commodity that is more appealing to buyers, partners, or future generations.?

Stage 7: The Succession Stage

This is when the owner fires themself.?Whether they choose to sell, take it public, or pass it on to the next generation, smart decisions in Stage 7 will ensure firms continue to succeed long after the founder is out of the picture.

Hasta la Vista, Baby!

There is no rule that says owners have to be sad, bitter, or exhausted at the end of their tenure. If they've built their business methodically using the 7 Stages of Business Success, they will be removing themselves from key roles at the right time, in the right way. That means their business doesn’t suffer, profits continue to roll in, and the company grows and becomes more profitable.

With proper planning, founders can be happy and proud of their success and well-positioned to exit without drama or consequence. If you want to know more about any of the 7 Stages of Business Success, contact me or my team, and we'll help you find profitable ways to move on to your next adventure.