Follow Dallas Linkedin
Email Dallas Email
Financial
Aug 15, 2018

Three Benefits of Written Exit Plans

Sponsored Content provided by Dallas Romanowski - Managing Partner, Cornerstone Business Advisors

Planning a business exit can seem like a lot of work at first.

From building business value to developing capable successors to figuring out exactly what you want to do with your life after you leave, exit planning might look like too much work for one person to do.

In our experience, exit planning isn’t something that business owners can tackle alone if they want to exit on their terms.

But with so much to do, where can you start?

One way to begin the exit planning process is by writing your exit plan down. Writing your exit plan down can provide three potential benefits when done properly.


Increasing Clarity, Accountability And Chances For Success

Written communication is often clearer and more specific than verbal communication. Typically, the act of writing causes business owners to think carefully, which decreases chances for misinterpretation.

Minimizing misinterpretations – about goals, resources and desires, specifically – often leads to clarity and consistency, which can cut down the amount of time it takes to implement the plan by months or even years.

Additionally, written exit plans encourage accountability. In a written exit plan, all participating advisors have responsibilities and deadlines. This makes the exit plan an executable document. It also helps you avoid procrastination.

Having a document that tracks deadlines and responsibilities can keep you accountable and help you avoid falling prey to the “rolling five-year plan,” wherein you’re always looking to exit five years from now.

Finally, simply writing your goals down increases the likelihood that you’ll achieve them. According to a 267-participant study on goal setting, written goals are much likelier to be executed. Dr. Gail Matthews, a psychology professor at Dominican University in California, found that individuals are 42 percent more likely to achieve their goals just by writing them down.


Maintaining Control

A common exit planning paradox is that most business owners don’t want to give up control of their companies before they’re ready, but they also don’t want to spend too much time on exit planning. Having a written exit plan gives owners a chance to maintain control of the process, while also controlling when and how they transition out of ownership.

Owners who write their plans down – with the help of an exit planning advisor and advisor team – can hand their plans over to their exit planning advisors, who will then take the lead on the process and execute the plan. This means that once you’ve confirmed your goals and written them down, your exit planning advisor works to address your goals based on what you’ve requested.

With a written plan, you can keep control of your business until you’re ready to give it up, and you don’t have to make exit planning your primary focus. This can increase your planning efficiency and give you the time to continue to build your company’s value.


Minimizing Cost And Time

In general, creating an exit plan can take several months, while executing the plan can take several years. Creating and executing an exit plan usually requires input from owners and several advisors and can also involve an owner’s family or management team.

With so many moving parts, it’s easy for owners to take more time and pay more money to exit than necessary. A written exit plan helps mitigate costs in terms of time and money.

Written exit plans can make the exit planning process more time and cost effective because they allow you to see where everyone is within the process. Rather than wasting hours of time calling each advisor to ask what they’re doing – time you could be spending working to generate revenue for your company – a written exit plan allows you to track everyone’s progress throughout the process. Your exit planning advisor is responsible for keeping the written document current and making sure that it reflects your resources, goals and assets relevant to your business exit.

When your advisors are all on the same page, knowing what they must do and by when, it usually minimizes the time and money you’ll need to spend on the process itself.

Written exit plans can benefit you as you begin to plan your business exit, and it’s important to remember that “written down” does not mean “chiseled in stone.” Written exit plans can, and often do, change. As your business and goals evolve, a written exit plan gives your planning strategies a chance to evolve in lockstep.

If you’d like to determine whether a written exit plan can focus your efforts at exiting your business; or if you’d like to begin the process of creating a written document to help guide your business, your family and yourself through your business exit, please contact us today.

© Copyright 2018 Business Enterprise Institute, Inc. All Rights Reserved

As a member of the Business Enterprise Institute (BEI), Cornerstone Business Advisors is an authorized distributor of BEI’s content and Exit Planning Tools.

The Cornerstone team includes former C-Level executives, successful entrepreneurs and advisers who offer unmatched experience in delivering advanced, custom-tailored, results-oriented solutions for business leaders. We developed the Performance Culture System™ to help clients implement best practices and drive high performance throughout their organization. For more information, visit www.launchgrowexit.com, call (910) 681-1420 or email [email protected].

Other Posts from Dallas Romanowski

Bizjournalblockad
Ico insights

INSIGHTS

SPONSORS' CONTENT
Untitleddesign2 9202334730

Investing in the Health of Our Communities, for Today and the Future

Novant Health - New Hanover Regional Medical Center Novant Health
Unknown 7112393341

Why Feasibility is Paramount to Success

Holly Segur - Lead Intuitively – Corporate Coaching
2022052 75 142344351

Bridging Futures: The Case for Toll Funding in Wilmington’s Cape Fear Memorial Bridge Revamp

Natalie English - Wilmington Chamber of Commerce

Trending News

Haley Promoted To President, CEO Of Wilmington Downtown Inc.

Staff Reports - Jun 18, 2024

Commercial Real Estate Firm Adds Four Partners

Staff Reports - Jun 18, 2024

Women To Watch Awards Finalists Announced

Staff Reports - Jun 18, 2024

Blue Surf Cafe To Celebrate 10th Anniversary, Add Dinner Service

Jessica Maurer - Jun 19, 2024

Proposed Castle Hayne Projects Could Bring Thousands Of Homes, Commercial Space

Emma Dill - Jun 17, 2024

In The Current Issue

CVB Dollars Fuel Out-of-state Push

From marketing to potential visitors via streaming services to attracting more events to the convention center, the Wilmington and Beaches C...


Aging In Place

Based on an age-in-place philosophy, CCRCs have existed for more than a century....


Local Museum Celebrates 45 Years Honoring Railroad

The museum was founded as a joint contribution of three local Wilmington residents and a handful of artifacts, growing from there....

Book On Business

The 2024 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2024 Power Breakfast: The Next Season