Every business owner will eventually leave their organization. It’s just a fact. Some approach the reality of exit with a well-developed strategy. Others avoid purposefully planning their eventual exits, believing they will instinctively know when the time is right for their departure and what to do when that day comes. And there is a myriad of different approaches to transition that fall in between. But regardless of a business owner’s personal journey, there is almost always a strong psychological component to their exit. Stepping away, or even just thinking about it, can trigger intense emotional responses. As their transition approaches, it is common for business owners to experience strong feelings like a profound sense of loss, fear of the unknown, or just plain melancholy – all of which can be as tough to navigate as the exit planning itself.
The key to experiencing a healthy and successful exit is to not let those ensuing emotions consume you or catch you off guard. Understanding and preparing for the common psychological challenges associated with ownership transition will help ensure that your exit is not just a financial success, but also a boost to your mental health and wellbeing.
Here are five smart strategies that can help you emotionally prepare for your exit:
It is important to start strategizing for your exit early, maybe even years in advance – and that includes the emotional aspects of planning. A well-conceived and gradual transition, along with a little soul searching, will allow you to consider the best post-ownership options that will meet both your financial and emotional needs.
Many business owners who transition away from their business crave the interactions and involvements, and maybe even the feelings of relevance, they once possessed. If you have an inkling that you will miss the engagement aspects of owning your business, consider including a future role like a consultant or chairman while you are in the process of negotiating the sale of your business. Maybe you want to embark on a new venture or dive into new or existing hobbies. The point is, if you believe that your exit is going to leave you feeling idle, make sure you factor in that desire for engagement.
Peer advisory boards and business coaches are exceptional resources when it comes to the numerous aspects of exit planning. Often, peer board members are serial entrepreneurs and have already successfully navigated both the operational and emotional demands of transitioning. Board members and business coaches also act in a lot of ways as accountability partners and emotional support systems. Click here if you are interested in learning more about TAB peer advisory boards.
Even when you are mentally prepared to exit your business, saying goodbye can be emotionally challenging. Instead of longing for the good old days, reflect and take pride in the success and impact of your business. By addressing that chapter of your life with pride and gratitude, you embolden your emotional self with positives and mental trophies.
Building a strong leadership team or successor allows the owner to exit knowing that the business is in good hands. Take the time and effort now to develop your leadership team. By creating team alignment now, your business will likely be more sellable with a better valuation when the time comes to exit. And should your succession plan include selling to a current team member, you can be rest assured they understand and embrace your core values. Click here to learn more about StratPro, TAB’s popular strategic alignment and leadership development program.
Remember, as a business owner, emotionally planning for your exit is an extremely important element of a truly successful transition. Even if you are years away from selling your business, do the work now to ensure that your personal and emotional wellbeing are intact and thriving after you have handed off the keys to the castle to the next generation of ownership.