Most business owners don’t launch a company thinking about how they’ll prepare for a business exit. But one thing is certain—you won’t be running it forever.
Whether you’re looking to sell in a few years, pass the business to a family member, or position a key employee to take over, successful exits don’t happen by accident. They’re built over time, through smart decisions and disciplined execution.
If you plan to exit your business in the next two years, the clock is already ticking. You’ll need time to prove the business can operate and grow without you. You’ll need a rock-solid leadership team and clean financials. You’ll need a story that buyers—or successors—believe in.
Here’s what you need to do now to prepare for a business exit in 24 months.
1. Start with the End in Mind
Stephen Covey said it first: “Begin with the end in mind.” That mindset applies directly here.
Before you build your exit strategy, get clear on your goals:
- Do you want to sell to a third party for maximum value?
- Transition the business to a partner or internal team member?
- Pass it to a family member over time?
- Or simply reduce your involvement and create more freedom?
Each path has different requirements, timelines, and implications. You don’t need all the answers today, but you do need direction.
Ask yourself:
- What kind of legacy do I want to leave?
- What financial outcomes do I need?
- Who could lead this business next?
- What will I do after I exit?
Clarity on your goals is the first real step to prepare for a business exit. Once you define success, you can reverse-engineer a roadmap to get there.
2. Get Out of the Day-to-Day
This is the hard one for many founders and longtime leaders.
If you want your business to thrive without you, you need to give it space to do so. That means removing yourself from daily operations—and doing it publicly.
Start with a simple test: if you disappeared for two weeks, what would break?
Wherever the breakdown happens, that’s a sign your systems or team still rely too heavily on your involvement. In the next two years, your goal is to:
- Empower your leadership team to own their roles
- Systematize operations so nothing depends on you
- Create visibility through dashboards and KPIs, not hallway conversations
The best businesses operate with the founder as a shareholder, not a bottleneck.
According to the Exit Planning Institute, 75% of business owners regret their exit within one year. One of the top reasons? The business wasn’t ready, and neither were they.
3. Build a Strong, Aligned Leadership Team
A strong business is built on strong people. That’s never more true than when you’re preparing to exit.
Over the next 6–8 quarters, invest heavily in building and developing your leadership bench. These are the people who will either:
- Run the business when you’re gone,
- Convince a buyer that the business is scalable,
- Or both.
Ask:
- Who consistently owns results, not just tasks?
- Who can think and act strategically?
- Who inspires and influences others?
- Who’s ready for more—if given the support?
Use those answers to level up your org chart. That might mean restructuring roles, adding a key hire, or identifying your successor.
Give them autonomy. Let them learn from mistakes. Coach in private, praise in public. If your team is executing without you by this time next year, you’re on the right track.
👉 Check out Align’s Platform for Strategic Execution to help align your team and measure progress.
4. Strengthen Your Strategy Execution Rhythm
If your business is going to run without you, it can’t rely on gut feel and hustle. It needs systems—and the most important is your strategy execution rhythm.
That includes:
- Quarterly planning with clearly defined priorities
- Weekly check-ins to track progress
- Scorecards and dashboards
- Structured leadership meetings
This rhythm creates consistent progress and visibility. Patrick Lencioni said it best: “If you could get all the people in an organization rowing in the same direction, you could dominate any industry.” Embedding this rhythm is essential if you want to prepare for a business exit and make it stick
5. Clean Up Financials to Prepare for a Business Exit
You can’t sell—or hand off—what you can’t explain. Clean, accurate, and timely financials are non-negotiable.
Start tightening now:
- Use GAAP-based financials
- Close books monthly
- Track trailing 12-month trends
- Build rolling forecasts
Bring in a fractional CFO if needed. Your future buyer or successor will want to see:
- Revenue and profit trends
- Customer concentration
- Recurring revenue models
- Operational efficiency
A clean financial story builds trust. And trust drives valuation.
6. Create Recurring Revenue Streams (If Possible)
Valuation often comes down to predictability. Recurring revenue = more value.
Ask yourself:
- Can we offer monthly retainers or contracts?
- Can we productize part of our service?
- Can we shift from one-time projects to ongoing relationships?
Even modest recurring revenue improves value and reduces risk for a buyer.
7. Reduce Key Person Risk
It’s not just about you. If any one person—employee, client, or vendor—is too important, that’s risk.
Start spreading knowledge, decentralizing authority, and cross-training teams. No one person should hold the keys to the business.
8. Document Your Playbook
What lives in your head needs to live in a playbook. Start documenting:
- Company strategy
- Sales processes
- Client onboarding
- Financial reporting systems
- Hiring and training playbooks
It makes the business easier to run—and easier to transfer.
9. Understand Valuation Drivers
Common valuation drivers:
- Profitability: Strong margins and cash flow
- Growth: Clear and consistent year-over-year increases
- Predictability: Recurring revenue and retention
- Transferability: Can the business run without you?
- Differentiation: Unique positioning or offering
Track these in your quarterly reviews. Talk with brokers, investors, or exit planners—even if you’re not listing the business yet.
10. Prepare Emotionally and Mentally
Exiting isn’t just a business move—it’s a life shift.
Give yourself space to think about what’s next. Start shaping your identity beyond the business now so the transition doesn’t feel like a loss—it feels like a launch.
Each of these actions helps you prepare for a business exit while strengthening your company’s day-to-day performance.
Final Thought: Run Your Business Like You’re Already Gone
If your goal is to exit in 24 months, act today like you’ve already stepped out.
Build a team that executes. Document everything. Strengthen your strategy rhythm. Clean up your financials.
Whether you sell or stay, you’ll be running a stronger, more valuable business for it.
Start today and prepare for a business exit that brings you freedom—not regret.
