What does it mean to be ready to exit?

After walking alongside business owners through the exit and succession process for years, I’ve noticed that the owners who are happy about their exit afterward often did a lot of planning beforehand.

Today I want to focus on the personal and financial side, because that’s the lane I’ve seen get ignored the most.

You might be amazed how many business owners who’ve been grinding for 20 or 30 years genuinely do not know what it costs to run their life without the business underneath them. 

Or maybe you can relate.

Because, when you own a business, the lines can get blurry. 

You’re pulling a salary, sure, but what about all the other expenses the business is currently covering that you’ll have to manage if it sells?

So when I say “know your number,” I mean, what does it actually cost to live your lifestyle today if the business disappeared tomorrow? Multiply that number by how many years you’re likely to need it.

Now compare that to what you actually have in liquid assets outside the business. 

Once you know the difference between those numbers, you can do something about it.

Maybe that’s increasing the business value, or pulling more money out of the business of investments, or revisiting your lifestyle goals.

But you can’t plan for numbers you haven’t identified yet.

Here’s something interesting that grabbed my attention, and I suspect it’ll grab yours, too:  In my experience, one reason deals fall apart is because sellers usually get cold feet.

So much of a business owner’s identity, their routine, their sense of purpose, their relationships, it’s all built around being the person who runs this company. And when that goes away, there’s a vacuum.

That’s why we start the conversation early. I always tell people that this is all wet cement, you know? We’re just getting it out there, we’re just whiteboarding.

And a lot of times, they start saying stuff they haven’t said out loud before. It won’t be fully baked, but it’s something. 

And something is way better than nothing when somebody asks you what you’re going to do with the rest of your life.

Maybe that includes running the business for longer than you’d originally assumed.

In fact, we recently had a client who went through the process of improving their business, building out the team, documenting their systems, all the stuff you do to become more attractive to a buyer.

And you know what happened? They looked at us and said, “Why would I sell this?”

The exit is there whenever they want it. But they’re not in a rush, they’re ready.

Because exit planning is a way of thinking. 

And it starts with knowing your real number, figuring out what comes after, and getting your business in a place that’s attractive to both you and buyers.

None of this has to be figured out tomorrow. And the plan can change.

But it starts with making one before you need one.

~ Jason

Book a JobWalk with me and we can start the conversation.

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