As business advisor, you have probably heard the question, “Why are you telling me about exit planning? I am not going to retire for years.”
Most owners view “Exit Planning” in a literal sense: Planning to Exit their business. Making an “exit plan” for their very distant exit seems like a foolish use of their time. To be completely honest, with all the competing definitions for exit planning, we can understand the confusion. A cursory scroll through search engines and popular advisory sites will give you enough different definitions to fill a dictionary. Most of these “definitions” are so convoluted and long winded that the authors hope you would give up before you finish reading. Because if you did finish reading the whole “definition” you would notice that in all those words they defined nothing. It is no wonder why business owners are confused when it comes to what exactly “Exit Planning” means.
So… What is Exit Planning?
To put it simply, Exit Planning is good business strategy. Exit Planning combines the plan, concept, effort, and process into a clear, simple strategy to build a business that is transferable through strong human, structural, customer, and social capital. A transferrable business is important at any stage of a professional career, even if the owner is not actively seeking to exit their business. To simplify that definition even further: exit planning allows an owner to work on their business instead of just in their business. In working on their businesses, owners mitigate risks, learn how to grow, protect, and harvest their business value, and prepare themselves for their ultimate exit.
Hear more about Exit Planning from Chris Snider:
How Can I Learn More About Exit Planning?
As easy it is to define exit planning, the actual process takes a unique skillset and continuing education to successfully incorporate exit planning into your business. Owners and advisors can learn more about how to implement exit planning strategies in their daily business routines through our assortment of educational programs. With EPI’s vast chapter network, weekly webinar series, book recommendations, and CEPA certification courses, there are numerous opportunities for professional development.
Learn more about our CEPA Program:
Exit Planning is an important part of owning and running a business. Without proper exit planning strategies in place, owners will miss out on helpful insights into growing and harvesting their business value. April Fools’ Day should be a day for harmless pranks and jokes, not one that fools owners about the future of their businesses.