Five things every business owner should know about exit planning

Five stages of value maturity

Owning a business comes with more than its fair share of risks. To increase value and minimize risks in your business, you should follow the 5 Stages of Value Maturity as detailed in Christopher Snider’s book, Walking to Destiny, 2nd Edition.

The importance of the four intangible capitals in your business.

What makes your business valuable? It is likely that 80% of your company’s value lies within the four Intangible Capitals or 4 Cs. These Intangible Capitals consist of Human, Social, Customer, and Structural Capital. Exit Planning Institute President, Scott Snider, shares his insights into the 4 Cs and how strong intangible capital builds value in your business.

The three legs and gaps in your exit strategy

When creating your exit plan, following the rule of three is imperative. As an owner, you should consider the Three Gaps and the Three Legs of the Stool.

The two concurrent paths in your exit.

As a business owner, likely the largest financial and personal decision you will make in your life is exiting your business. Successful exit strategies follow two concurrent paths. The business improvements path and your personal and financial planning path. Failing to consider and plan for both paths equally can cause problems to arise in your life and your business.

The one goal of exit planning

On the surface, it may seem like the main goal in exit planning is harvesting the value in your business andexiting happily into the next phase of your life. However, it is so much more than that. The goal of any successful exit plan is to create a significant company.

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