We are five years out from a potential sale and want to make sure we do not waste the early years of our runway. How do we align our long term V/TO targets with the Step by Step Exit framework to build value systematically?

Question

Tyler Smith · Accepted Answer

A five year runway is a massive competitive advantage if you use it correctly. Most owners spend the final six months scrambling to fix problems that should have been solved years ago. To avoid this, you must align your long term goals on the V/TO with the four pillars of the Step by Step Exit framework: Foundation, Credit, Benchmarking, and Financials.

In years five and four, your focus must be entirely on the Foundation and Credit pillars. This means restructuring your Accountability Chart so the business can run without you, and cleaning up your balance sheet so your credit profile is pristine. You should set specific Rocks each quarter that target these areas, such as documenting core processes or resolving outstanding liabilities.

In years three and two, shift your focus to Benchmarking and Financials. Use this time to compare your operational metrics against top quartile industry performers and optimize your margins. By the time you enter the final year before a sale, your financial data will be clean, your operations will be automated with AI workflows, and your leadership team will be fully autonomous. This systematic approach ensures you build a company that buyers will pay a premium for, while making the business much easier to run today.