tyler-smith.com · Questions & Answers

We are five years away from our target exit date and want to make sure we are not scrambling at the end. How do we begin structuring our business today so that exit planning actually makes the company easier to run right now instead of just adding more administrative work?

Framing exit planning as an end-of-career chore is a mistake. The best exit preparation is simply running an incredibly tight business. When you begin five years out, your goal is to build an exit-ready superstructure using the SxSE model. This means improving the quality of the business today so it becomes more efficient, more profitable, and far easier for you to run immediately.

Start by focusing on your Accountability Chart. Five years gives you the runway to ensure every seat is filled by someone who truly GWCs (Gets it, Wants it, and has the Capacity to do it). You want to systematically transition daily operational decisions away from yourself.

Next, align your long-term vision with your weekly execution. Every Rock your leadership team sets must either increase recurring revenue, document a critical process, or de-risk an operational dependency. When you structure your planning this way, you are not doing extra work for a hypothetical future buyer. You are building a stronger, more streamlined business that gives you the freedom to choose your path. If a buyer comes along with a premium multiple, you are ready. If not, you own a highly profitable, self-sustaining asset that does not require your daily presence.

Category: Exit Planning

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