We are exactly five years away from a target sale date. What are the high-level operational priorities we must build into our annual plans right now so we do not end up scrambling in year three?

Question

Tyler Smith · Accepted Answer

Five years feels like a long runway, but it disappears quickly. When you are five years out, your priority is building a business that is completely transferrable. This is the stage where you make structural changes that are too disruptive to attempt closer to a transaction.

Your first priority is cleaning up your balance sheet and corporate structure. Resolve any outstanding litigation, buy out difficult minority partners, and ensure your intellectual property is cleanly owned by the parent entity.

Your second priority is to lock in your leadership team. You must evaluate every seat on your Accountability Chart to ensure you have the right people in the right seats. If you have legacy employees who lack the capacity to scale, you must make the hard decisions to transition them now. A buyer needs to see a team that can run the business for the next decade.

Your third priority is to systemize your operations. Use the EOS® three-step process to document your core processes. Ensure every department is running on these documented systems, and that you have a training program to onboard new staff without founder involvement.

Finally, align your personal goals with your business strategy. Use the V/TO® to define your five-year target and map out the exact milestones needed to reach it. When you treat your exit as a long-term strategic Rock, you avoid the panic of a rushed sale and maximize your ultimate payout.