Can’t you just focus on building and growing an excellent company, and the rest will take care of itself?
Ultimately, there are reasons why just building a strong business is not enough to be assured of a successful exit. These reason best explain why every business owner needs to create and follow an exit plan years before you intend to exit.
Let’s call the reason the “Unknown Destination Effect.” Imagine you’re out for drive, but don’t have a clear destination in mind. Without knowing where you want to end up, it’s impossible to know if the next left or right turn will eventually lead you to anywhere good.
Sometimes taking a drive on a beautiful day without a known destination can be fun. But when it comes to your business, generally you want to know where you are going. Leading your company without a clear set of exit goals is the same as driving around with an Unknown Destination. You end up making decisions without knowing if they will lead you anywhere good by the time you arrive at your future exit.