Why Procrastination Can Be Devastating for Business Owners' Exit Plans
Business owners often pour their heart and soul into building their businesses, but when it comes to planning their eventual exit, many hesitate, delay, or outright avoid taking action. Procrastination in exit planning can lead to missed opportunities, undervaluation, or even forced decisions under unfavourable circumstances. Every business owner deserves a maximum-value exit, but only 1 in 20 succeed.
As trusted advisors, it’s our responsibility to help business owners recognize the importance of early and strategic exit planning. But how do you motivate them to overcome their hesitation and take that critical first step? The key lies in understanding their challenges, addressing their concerns, and guiding them toward a clear, actionable path.
In this post, I’ll share proven strategies trusted advisors can use to help business owners stop procrastinating and take proactive steps toward a successful exit plan.
Getting business owners to take action on exit planning rather than procrastinating requires a combination of education, motivation, and guidance. Here’s the advice I’d give trusted advisors to encourage business owners to prioritize their exit planning:
Highlight the Urgency of Planning Early
Frame Exit Planning as a Growth Strategy: Emphasize that exit planning isn’t just about leaving the business—it’s about maximizing its value and ensuring its scalability and sustainability.
Educate on Time Sensitivity: Explain how starting early allows time to address value gaps, improve financials, and prepare the business for a premium valuation.
Show Real-Life Consequences: Share cautionary tales of business owners who delayed planning and faced financial or operational setbacks during their exits.
Connect to Personal Goals and Legacy
Focus on the "Why": Help the owner articulate their personal motivations for the exit—whether it’s financial freedom, leaving a legacy, or pursuing new passions.
Reframe the Exit as an Opportunity: Position the exit as the beginning of their "next best life," aligning with their future aspirations and security.
Make the Process Less Overwhelming
Start Small: Propose starting with a low-commitment step, such as a business valuation or a gap analysis.
Break It Down: Present the exit plan as a series of manageable steps rather than a massive, intimidating process.
Leverage a Trusted Team: Assure them they won’t have to go through the process alone—trusted advisors will handle the technical aspects.
Address Emotional Barriers
Acknowledge Their Fears: Many owners procrastinate because they fear losing identity, control, or making irreversible decisions. Address these fears openly and empathetically.
Promote Flexibility: Explain that an exit plan doesn’t mean they have to leave immediately; it’s about being prepared for when they’re ready.
Provide Clear Value
Quantify the Benefits: Use specific examples or projections to show how a well-prepared exit can significantly increase their financial outcomes.
Personalize the Message: Tailor the discussion to their unique circumstances and business goals. Generic advice won’t resonate as well as targeted insights.
Emphasize Risk Reduction: Highlight how planning mitigates risks such as forced sales, undervaluation, or family disputes.
Use Effective Engagement Techniques
Storytelling: Share success stories of other business owners who benefited from exit planning.
Ask Thought-Provoking Questions: Use SPIN selling techniques, such as:
“What would happen if you were forced to sell tomorrow—are you ready?”
“What would it mean to your family and team if your exit wasn’t well-planned?”
Engage Their Inner Circle: Involve their family, co-owners, or key employees, who often have a vested interest in the exit and may encourage action.
Offer Immediate Action Steps
Present a Clear Roadmap: Give them a simple, actionable next step, such as scheduling a discovery meeting or completing a pre-exit checklist.
Create Accountability: Set clear deadlines for the first actions and follow up to ensure progress.
Leverage Momentum: When they take an initial step, celebrate and use that momentum to move them forward.
Build Trust
Position Yourself as a Trusted Guide: Demonstrate competence, integrity, and a genuine interest in their success.
Offer a No-Pressure Consultation: Provide value upfront without forcing a commitment, allowing them to build confidence in your expertise.
By focusing on education, motivation, and actionable steps, trusted advisors can guide business owners from indecision to taking meaningful action on their exit planning.
Empowering Business Owners to Take the First Step
Exit planning doesn’t have to be daunting—it’s a structured process that sets business owners up for financial security, legacy preservation, and a smoother transition into their next phase of life. As trusted advisors, you have the unique opportunity to guide them through this journey by addressing their fears, simplifying the process, and showing the tangible benefits of taking action now. Further, you can add even more value by quarterbacking their advisory team for them, by bringing in the best specialists when appropriate.
Remember, the greatest risk for business owners is waiting until it’s too late. By framing exit planning as a growth opportunity and aligning it with their personal goals, you can empower them to take the first step. Start small, build trust, and create momentum—because the best time to prepare for an exit is long before it’s needed.
It’s time to help business owners transform procrastination into progress and take control of their future. What steps will you take today to make a difference in their journey? Let’s lead the way together.
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