For most entrepreneurs, the “Exit Phase” sounds like the end of the road—the moment you finally sell the business and sail off into retirement. But if you’ve scaled your business intentionally using a proven system, the Exit Phase isn’t an end; it’s a powerful new beginning.
In this stage, your role shifts fundamentally. You are no longer just a business owner or a CEO; you are becoming a Business Investor.
Are You Actually Ready to Exit?
The hardest truth for many owners to swallow is that if the business still relies on your presence to maintain profitability, you haven’t truly reached the Exit Phase.
Without a business that is fully scaled and systemized to run without you, your retirement may be postponed by years. To exit successfully, you must first move from being the “firefighter” to the “architect,” ensuring the machine functions perfectly in your absence.
Shifting the Financial Model: Salary vs. Net Profit
In the earlier phases of business growth, you likely drew a salary as the primary operator. In the Exit Phase, that model flips. Once you achieve true scale, your income should be derived entirely from net profits.
This shift is a milestone of success. It means you are now living off your investments rather than your daily labor. This financial freedom allows you to look at your business not as a job you have to show up for, but as a high-yield asset in a broader portfolio.
The Strategic Decisions of the Exit Phase
Once you are no longer tied to the daily operations, your work shifts to high-level strategic decision-making:
- Keep or Sell: Do you keep the business as a consistent cash-flow engine, or do you sell it for a massive valuation?
- Succession Planning: Who will lead the company next? Whether it’s an inside sale to employees, an ESOP, or an outside acquisition, planning this move takes years of intentionality.
- Wealth Management: How will you deploy your profits? This phase requires new skills in property investment, portfolio diversification, and estate planning to ensure your hard-earned wealth is protected and grown.
New Roles and Unforgotten Passions
What do you do with your time once the business runs without you? Many owners fear the “void” of retirement, but the Exit Phase offers more exciting roles:
- Chairman of the Board: Providing high-level oversight without the daily grind.
- External Board Member: Sharing your hard-won wisdom with other companies.
- Philanthropy and Passions: Pursuing the hobbies or missions that were sidelined during your growth years.
Engineering Your Perfect Exit
The journey from the chaos of a startup to the freedom of the Exit Phase requires a cohesive blueprint. The ActionCOACH Business Operating System (ABOS) was developed to provide that singular, start-to-finish guide.
If you want to know how ABOS can help you move from the Scale Phase to a high-value Exit, let’s connect.
Author: Mark McNulty, Business Coach in Louisville, KY