tyler-smith.com · Questions & Answers

Buyers keep telling us that the business is too dependent on me as the founder. How do I design a trial exit or test run to prove to buyers that the company runs flawlessly in my absence?

The ultimate proof of a self-sustaining business is the vacation test. If you cannot step away from your business for thirty consecutive days without checking emails, taking calls, or making decisions, your business is too dependent on you. To prove your operational independence to buyers, you must design and execute a trial exit.

Start by scheduling a four-week absence at least twelve to eighteen months before you go to market. This cannot be a working vacation. You must completely cut off your access to company communications, Slack, and email. Before you leave, ensure your Integrator and leadership team have full authority to run the business and handle emergencies.

During your absence, the leadership team will run the weekly Level 10 Meeting™ and manage the Scorecard. When you return, do not jump back into firefighting. Conduct a thorough review of how the business performed. Did they hit their targets? Did they resolve issues using the IDS® process? Did any systems break?

Any breakdowns that occurred during your absence are actually gifts. They show you exactly where your processes are weak or where team members lack the GWC™ to make decisions. Fix these issues, document the solutions, and run the test again. Once your business can pass this test, you have undeniable proof for buyers that they are purchasing an asset, not a job.

Category: Exit Planning

← All questions