Exit Planning 101: How to Prepare Mentally and Financially to Exit

Miranda Kishel
Jun 3
2 min read

Selling or transitioning out of your business is one of the most significant financial and emotional events of your life. Yet most small business owners delay exit prep until it’s too late—leaving value on the table or entering retirement unprepared.

Exit planning is not just about the numbers—it’s also about the mindset. Preparing both is essential if you want to exit on your terms.

Step-by-Step: Prepare Mentally and Financially for Exit Planning

1. Define What "Successful Exit" Means to You

Success is personal. Before you plan, get clear on your goals:

Do you want to sell and walk away?
Transition to family or employees?
Retire completely—or stay involved part-time?
How much money do you actually need post-exit?

Write down your vision so your planning aligns with it.

2. Get a Business Valuation

You can’t plan a financial future if you don’t know what your business is worth today.

A valuation gives you a realistic baseline.
It helps identify value gaps you can fix before exiting.

💡 Pro Tip: Use a qualified valuation expert—not a rule-of-thumb multiple.

3. Assess Your Personal Financial Readiness

Work with a financial advisor to:

Estimate how much you need to retire or pivot comfortably
Calculate how much of that can come from your business
Understand tax implications and net proceeds

The SBA emphasizes the importance of aligning personal and business financial planning early in the process (SBA.gov ).

4. Address Emotional Readiness

Mentally letting go of a business you built is hard. Ask yourself:

Who am I without this business?
What will I do with my time after I exit?
Am I emotionally ready to transfer control?

Talk to other owners who’ve exited. Start thinking about what’s next now—not after the deal closes.

5. Involve the Right Professionals

You’ll need a team to help with exit prep:

Business valuation expert
CPA or tax strategist
Business attorney
Financial advisor or planner
Exit planning advisor (to keep it all on track)

Tips from Experience

Start early. Exit planning ideally begins 3–5 years before your target exit.
Be honest with yourself. Denial delays planning and hurts value.
Detach your identity. You are not your business. You’re more than your role as an owner.
Practice letting go. Start delegating key decisions to build a team that can run without you.

Common Pitfalls to Avoid

Waiting too long: Many owners assume they can exit in a year. That rarely works well.
Overestimating value: Don't assume your business will sell for what you “need.” Let a valuation guide you.
Ignoring mental prep: Owners who fail to plan for life after the business often experience regret or anxiety post-exit.
Trying to DIY: Exit planning requires coordination—legal, tax, financial, and operational. Don’t go it alone.

Final Exit Prep Checklist

✅ I’ve defined my personal and financial goals

✅ I’ve completed a current business valuation

✅ I’ve reviewed my retirement and lifestyle needs

✅ I’ve considered my emotional readiness

✅ I’ve assembled my exit team

✅ I’ve mapped out a 1–5 year transition plan

Ready to take the first step?

Schedule your personalized exit strategy session. Start your exit prep now—before you're forced to.