We want to begin our exit runway five years before we sell. What are the fundamental shifts we must make in our leadership structure during this first year of preparation?

Question

Tyler Smith · Accepted Answer

Five years seems like a long runway, but it disappears quickly when you are trying to clean up decades of operational debt. When starting five years out, your first step is to align your leadership team on the V/TO®. You must clearly define your five-year target and work backward to set your three-year picture and your one-year plan.

In year five, your focus is structure and accountability. You must review your Accountability Chart and ensure every single seat has one accountable name, and that every person in a seat truly GWC™ (Gets it, Wants it, has the Capacity to do it).

You also need to establish a rhythm of weekly Level 10 Meetings™ to build operational muscle. Use this first year to identify key-person risks and begin documenting your core processes. Do not worry about fancy AI integrations or tax structuring yet. Focus on building a healthy, highly functional leadership team that solves issues completely using IDS®.

By building this foundation now, you ensure that when you enter year three of your runway, your business is already operating with a high degree of predictability and minimal owner dependence, making the eventual transaction much cleaner and less stressful.