I’m often asked what I enjoy most about the work that I do. It’s all about helping business owners find clarity. I’ve been blessed over the years to work with clients who are great visionaries with tremendous resilience. From humble beginnings they have created enterprises that inspire the employees who work for them and clients who use their services. As a business owner, one of your great gifts is seeing things that have not been created yet and building a road map to ensure your vision becomes a reality.

Helping an owner build a road map for a successful exit can be a very fulfilling endeavor. Most owners I work with have the answers inside them, but have not taken the time to examine them fully. Helping them see those answers and potential paths for a successful exit is one of the most rewarding parts of my work. So why should you consider exit, succession and retention at the same time? If you look below the surface, they are all interconnected. If you are considering an exit from your business, then you need to examine and evaluate all possible ownership succession paths. Do you sell inside to a group of trusted key employees? Is there a supplier or friendly competitor who has expressed interest? If you have children in the business, should you consider gifting shares outright or gifting shares with a retained interest? Should you consider creating a new entity such as an ESOP or family limited partnership to help facilitate your transition?

Your decision to exit, to determine what you really want, to define a timeline, and to build a sound team will all depend on an ownership succession path that makes the best sense for you. Exit and succession planning go hand in hand. So does retention planning, which means your ability to take a good, hard look at your current incentive and retention plan to ensure your key people stay through the ownership transition. As you know well, your key people are the core of what makes your business successful. Taking time to understand, evaluate and implement the best possible plan is a must in today’s environment. Any potential buyer will see a strong long-term incentive and retention plan as a positive from a valuation standpoint. All too often owners will neglect this important facet of their business before bringing their business to market. Remember the saying “A seller sees value where a buyer sees risk.” Take the time to address this important issue and think of it from a selfish standpoint. If I take time to invest in my key people and build a sound plan for them, how will it strengthen my valuation and make it easier for me to exit on my terms?

Taking the first step toward creating a solid exit and ownership transition plan can seem overwhelming at times. The sooner you start the planning process, the better it will be for you, your employees and your family. Reach out to a trusted business owner friend who can be a sounding board. Find an expert who you know will have your best interest at heart. Be transparent with your employees, and inspire them to see this transition as a positive. Change can be a very positive thing in our lives when we come to terms with it and embrace it. Create the redundancy systems that need to be put in place for your company to survive beyond you. Embrace your journey, every step of the way.