You go to the gym to get fit, not the other way around. Same for your numbers. Waiting for a good year before you think about exit gets the order backwards. Planning shows you where the business is weak, and working on those gaps is what lifts the numbers.
When I was looking for a gym, I asked the coach, "But I'm not fit. Am I ready for this?" She said, "You've got it all wrong. You come here to get fit."
I think of that every time I talk to owners about exit, because I hear the same thing. "Let me fix the numbers first." "Once we cross a million, then we'll talk." "Not this year. This year was bad."
The thinking goes: get the business in shape, then start planning the exit. Exit planning works the other way. It's the workout.
There are seven things that shape a successful exit: talent, customers, pipeline, brand, IP, innovation and financials. Everyone's eyes go to the last one. But the other six are what drive it. Your clients, your pipeline, the talent in the house, your brand, what you own, what you're building next. All of it ends up in your financials.
So stop waiting for the numbers to be ready. Planning is how you get them ready. Start where you are, get a clear idea of the state of your business, and like any workout, the results come from showing up.
Every exit myth comes undone the same way: knowing where your business stands, early enough to choose your road. That's why we built Ten Days In. Ten days inside your business, and at the end, a read of what you've built and the options open to you.
Read more:
Business exit myth #4
Upcoming: Business exit myth #5