Founders should plan two exits: a long-term sale 10-15 years out, and a near-term backup for when burnout or family needs hit. Regularly assess both, identify who might buy you out, and build it into your business plan from the start.
But so the first thing is that I encourage them to have a target exit option. So this is the long-term plan we're shooting for. Yeah. Like maybe me for my company, my long-term plan is that I wanna sell my business someday. Maybe that's 10 or 15 years down the road, but also at any given time, I need to have a backup plan. If something happens to me, one of those personal events, burnout, maybe my spouse or life partner gets a once in a lifetime opportunity across the world that we can't pass up. Right. You know, maybe I have another investment that blows up. Maybe my son needs me, right? What's my backup plan if I have to exit now, like this year? Right. And so maybe that I have multiple business partners. Maybe it's that my business partner buys me out or the business partner takes over. So knowing any given year, what is the long-term target exit option I'm shooting for and what's my backup option? That's kind of bucket one. And that fits into that long-term planning we talked about, the number one mistake. Now, just by thinking of those 2 things in nature, there's— it's going to populate
How Can You Maximize Your Business Value Before Selling? with Randy Katz Video
