The Exit Trap – Why It’s Important to Plan with the End in Mind

I recently met a business owner whose company is exploding — $300K in revenue in year one, expecting $600K this year. They were already imagining growth and a future sale, but hadn’t thought about why to prepare now.

They figured, “I’ll deal with that in a couple of years.”

But as we talked, I couldn’t help but remember something an exit planner friend said recently:
“Most companies need at least three years to get ready.”

That conversation stuck with me. It’s easy to assume we’ll think about the end later — when we’re getting close to selling — not while we’re still pouring everything into scaling.

But for so many business owners, “later” turns out to be too late.

Even businesses that seem strong can face a harsh reality: many owners end up with less than they expected—or worse, their business may not be able to support their retirement or family goals at all. According to the Exit Planning Institute's 2025 State of Owner Readiness Report, 70–80% of businesses that go up for sale don’t sell as planned.

Not because the owners didn’t care — but because the business depended too much on them, wasn’t structured to let someone else step in, or a health crisis forced their hand before they were ready.

The good news is, you don’t have to be ready to sell to start preparing.
You just have to start thinking like someone who could.

The “exit trap” isn’t just about operations—it’s about the financial foundation you’ve built. Without planning, you risk:

• Losing value you’ve worked decades to create.

• Leaving your family or successors unprotected.

• Sacrificing retirement or personal financial security.

The first step out of the trap is planning with the end in mind—not just thinking about selling, but protecting what you’ve built. That can look like:

• Life insurance solutions that safeguard business interests, fund buy-sell agreements, or retain key talent.

• Retirement and financial planning that aligns your personal goals with your business exit timeline.

• Professional guidance from exit planners, CPAs, and advisors who help you see around corners.

The goal isn’t to rush the finish line.
It’s to build a business strong enough to give you choices — whether you sell, scale, or step back.

Because “someday” comes faster than we think.

References:

• Exit Planning Institute, State of Owner Readiness Report 2025: https://exit-planning-institute.org/state-of-owner-readiness

• BizBuySell, Q2 2025 Insight Report: https://www.bizbuysell.com/insight-report/