Do you remember Snagglepuss? The pink puma from the Hanna-Barbera cartoon always had a knack for catchphrases and the dramatic. If you remember him, you may have noticed that the title of this article has already misquoted one of his most famous quips, “exit, stage left.” You may also to the point in your career where you are considering an exit yourself and we want you to “exit, stage RIGHT.”

You’ve never heard of this character? Well, besides suggesting that you broaden your Hanna-Barbera palette beyond the Flintstones, Jetsons and Scooby-Doo, you are likely in a much earlier phase of your career. However, if you own a company, we would suggest that you should be planning your ultimate exit.

“Why so early?” you may ask. Good exit and succession planning are vital activities, regardless of your age or career stage.

Here are some basic facts from the Exit Planning Institute that may put the “why” into perspective:

• Building a company that is Best-in-Class takes 3.5-5 years

• You may know when you want to exit the company, but there is not a guarantee of when you have to exit the company (i.e. death, disability, divorce, disagreements, distress). It is important to be prepared

• Best-in-Class businesses sell for a higher value

• Implementing exit planning initiatives into your daily activities will, indeed, also enhance your productivity, efficiency and overall bottom-line

• In short, exit planning is good business strategy

Below are some action steps to immediately explore but, first, you should spend time to discover and prepare in each of these areas before taking action.

1.  80% of your business’ value is made up of Intangible Capitals. Maximize the 4 C’s.

The four intangible capitals are:

• Human Capital - Who is your team? Are they skilled? Knowledgeable? The right fit? Is there succession planning when you leave? Or will most of the team exit when you will?

• Customer - What is your customer base? Is it diverse? Or does one customer make up the bulk of your sales? Who calls on the customers? Is it only you? What happens to the customer base when you exit? Are they loyal to you or the company?

• Structure - This intangible can include your actual structures (i.e. buildings). Are they well-maintained? Have you been delaying improvements and upkeep? But, more importantly, this intangible includes your business’ day-to-day activities. Are your policies all in place? Are they routinely reviewed? Or are they just understood or “in your head?” Do you have robust systems in place? Has succession planning begun? Is cross-training a daily activity? Are there communication gaps between departments?

• Social - How is your business perceived? Perceived by your team? Your customers? The community?

A valuation and an examination of your financials will give a glance into the value of your business, however, it will sell based on the appeal through the eyes of the buyer — this is why the intangible capitals are so important.

2.  Make sure to “take care of you” too.

While this is a startling statistic, 75% of business owners regret selling their business one year after they exit. Why? One of the most common factors is because the owner did not plan for his/her next phase of life. What is your Wealth Gap? Do you have enough money to retire and live the lifestyle you desire? What will you do after you exit? Your business has been your life! What will your life look like without the business? Think of this action as a three-legged stool — all three legs must be present for the stool to not tip over — each leg is equally important! Concentrate on these three legs of the stool:

• Business - Make improvements to the business to maximize value at the time of exit

• Personal - Build your own plan for life after retirement

• Financial - This primarily falls under the personal plan; you want to ensure your financial security after retirement

3.  Run two concurrent paths for business and personal planning.

Both business and personal planning are equally important, but very different. Build a team of trusted internal staff and external advisors for both activities. Test the readiness of the business for sale and your personal exit readiness at least annually.

4.  Concentrate on VALUE.

We tend to concentrate on sales, efficiency and “the bottom line.” Why not? After all, that is how everyone gets “paid.” We challenge you to shift your paradigm, however, to value. Why? Because if you and your personal and business planning teams are focused on value, the rest will take care of itself. Remember, you want to build a Best-in-Class business. To do that, exit planning is present tense!

5.  This is a lot to chew on…just take it one bite at a time.

It would be overwhelming and virtually impossible to do all of these things at once. The first step is to discover the strengths and weakness of your business and personal preparedness. Then pick no more than three “to dos” and conquer those through short-term action plans, called 90-Day Sprints. Work with your teams and hold them accountable to accomplish activities during the 90 days. Then evaluate, did you complete the task/deliverable? If not, it is okay, but ask “why” and make it a priority during the next 90 days to get it right.

Getting ready to exit a business may feel daunting but remember, the only way to eat an elephant is one bite at a time.

Reach out to us when you want to explore these areas in more detail. This will be work but with trusted advisers it will be fun, rewarding and most importantly, vital to your exit. We want you to “exit, stage right” (exit at the right stage) and not be stuck unprepared and saying, “Heavens to Murgatroyd!”