We have decided on a five year exit runway. What are the absolute first operational actions we must take in year one to ensure we do not waste this massive head start?

Question

Tyler Smith · Accepted Answer

Year one of a five year runway is about assessment and alignment. You must start by running a comprehensive Step by Step Exit assessment to identify the hidden gaps in your financial, credit, and operational foundation. This is not the time to look for buyers. Instead, focus on perfecting your Accountability Chart and ensuring every seat is occupied by the right person in the right seat. You must also begin the process of documenting your core processes so that the business begins to run independently of your personal day-to-day involvement. Use your quarterly planning sessions to set specific Rocks that directly address your operational weaknesses. By focusing on building a stronger and more efficient company today, you make the business far easier to run right now while silently compounding its future valuation. The work you do in year one sets the trajectory for the entire five year runway, giving you the luxury of time to fix structural issues before they can drag down your eventual sales price.