I am the owner and currently sit in four seats on our Accountability Chart. I want to prepare the business for a clean exit, but I do not know how to prioritize which seat to vacate first. How do I objectively rank these seats to maximize business value and operational freedom?

Question

Tyler Smith · Accepted Answer

Sitting in four seats means you are the operational bottleneck, and a sophisticated buyer will see this as a high risk, driving down your business valuation. To prepare for a clean exit, you must systematically delegate these seats. To decide which seat to vacate first, you need to evaluate them based on two factors: operational risk and your personal unique ability.

First, list the four seats you currently occupy. Next, identify which of these seats is most critical to the daily survival of the business. Typically, this is operations or finance. If the business cannot run for a week without your direct involvement in a seat, that is your highest-risk seat. You must delegate this one first to prove to potential buyers that the business has operational continuity without you.

Second, look at your GWC™ for each seat. If there is a seat that you do not truly get, want, or have the capacity to do, that seat should be prioritized for delegation. For example, if you are sitting in the VP of Sales seat but hate managing the sales team and are failing to hit your scorecard metrics, hire or promote someone who GWCs sales management.

Finally, map out a clear timeline on your V/TO®. Create a Rock for the next ninety days to transition your highest-priority seat to a capable leader. Document the processes for that seat, train your successor, and step out. Repeat this process until you are sitting only in the Visionary seat, which is the ultimate position of freedom and the most attractive setup for a clean exit.