Why Every Entrepreneur Needs an Exit Strategy

When you launch a business, the last thing on your mind is leaving it. Yet, as Entrepreneurial Operating System (EOS) Coach Tyler Smith explains in his conversation on our recent episode of Profitability Playbook: The Simple Numbers Podcast, every business will transition, whether by choice or circumstance. The question is, will you be ready?

The Silver Tsunami and Why Exit Planning Matters

Tyler highlights a looming reality: over the next decade, $30 trillion in business assets will change hands as Baby Boomers retire. This “silver tsunami” means thousands of companies will face ownership transitions. Unfortunately, most lack a clear plan, leaving value on the table and exposing families and teams to unnecessary risk.

What Is EOS and How Does It Help?

EOS is designed to help businesses gain clarity, traction, and health. It aligns teams around a shared vision and drives execution. But while EOS is an incredible engine for growth, Tyler points out a gap — it doesn’t inherently prepare companies for exit readiness. That’s where his book, Exit Ready: Rocks, Roles, and Results That Power Your Exit Plan, comes in.

Key Principles of Exit Readiness

1. Start early: Exit planning isn’t something you do after receiving an unsolicited offer. Every offer that comes out of the blue is likely undervaluing your business. Planning ahead ensures you control the timing and maximize value.

2. Think legacy, not just vision: EOS focuses on vision; exit planning focuses on legacy. Ask yourself: What happens to this organization if I disappear tomorrow? If the answer is chaos, it’s time to build succession plans.

3. Close value gaps: Tyler emphasizes identifying risks like tribal knowledge or undocumented processes that could reduce your company’s worth. Fixing these gaps can increase valuation by multiples.

4. Build your advisory team: You’ll need six trusted advisors: CPA, wealth advisor, financial planner, attorney, and others with deep exit planning expertise. Most local providers aren’t equipped for complex transitions, so choose wisely.

5. Prepare emotionally: Selling your business isn’t just a financial transaction, but a personal transformation. Tyler recommends working with coaches or peer groups to navigate the emotional side of letting go.

Why It’s Urgent

Beyond generational shifts, Tyler notes two trends shaping the future: AI and economic uncertainty. AI is impacting talent development as automation is changing how companies train future leaders, creating new succession challenges. Amid shifting economic conditions, many owners are accelerating exits ahead of predicted market shifts around 2030. It’s essential to stay on top of these changes and plan ahead.

Next Steps

If you’re an entrepreneur, don’t wait for the “perfect time” to plan your exit — it rarely exists. Start by asking:

·      Do I have a documented succession plan?

·      Are my processes fully transferable?

·      Who are my trusted advisors for tax, legal, and wealth planning?

To learn more about EOS, purchase Tyler’s book, Exit Ready: Rocks, Roles, and Results That Power Your Exit Plan, or visit his website.

Ready to take control of your exit strategy and secure the future of your business? At CRI Simple Numbers, we specialize in helping entrepreneurs build sustainable profitability and prepare for what’s next. Whether you’re planning for growth, succession, or a successful exit, our team can guide you every step of the way. Contact us to start building a plan that protects your legacy and maximizes your business value.