There Are 4 Types Of Exiting Owners. Which Type Are You?
In an article titled Exiting Your Business: Have you done your homework? The Signal asks if you are financially and mentally ready to exit.
They discuss the characteristics of businesses that are sellable vs businesses that are not, before proceeding to their “Owner Types” and claim four types of owners based on financial readiness & mental readiness to exit.
Financial readiness is determined by the extent to which you are not dependent on the proceeds from your exit to meet your long-term financial goals. Truthfully answering the question “Am I ready to leave the business?” will tell you if you are mentally ready to exit the business.
- The owner who is well off but chooses to work has high financial readiness, but low mental readiness.
- The owner who is rich and ready to go has high financial readiness and high mental readiness.
- The owner who wants to stay and grow has low financial readiness and low mental readiness.
- The owner who says, “get me out at the highest price,” has low financial readiness, but high mental readiness. Exiting Your Business: Have you done your homework?
