Monday, May 11, 2009

Sellers Remorse - The Greatest Exit Ever Told

This diagram summarizes many Exit Planning strategies. We've all experienced the fact that nothing goes on forever. There are limits to growth. This is due to the effect of Balancing loops as explained in System Dynamics. The diagram shows business growth leveling off as some limit to a resource is ultimately reached.

The optimal time for a business owner to move to their next challenge is before that happens. It's the "X" on the chart marked "Time to Exit." From this earlier position a Potential Growth possibility exits. A new ownership will change parameters and frequently delay the Balancing forces that result in the Actual Growth curve. The big issue at this point in time is that it feels like selling now is too soon. This is strange; but that's the wrong feeling you may get at the right time.

We can never know the future and can never know the exact time selling our business will yield the optimal result. What we can know is when it's time to move on to the next thing in our life, in spite of financially-based feelings.

The timing of the Easter story is striking when seen as an Exit. The crucifixion Christians celebrate on Easter is preceded by Palm Sunday. This day celebrates the triumphant entry of Jesus into Jerusalem, by all political and social standards the peak of His ministry to date.

Imagine the feelings that might have been experienced by Jesus and His followers as He Exits at this point. Everything seems to be going so well! Yet His mission is completing and He knows this is the right time. Unlike every other Jewish Prophet or King before Him, death will not limit the growth of His ministry. Defeating death will enable the greatest growth cycle of all history.

In the Garden of Gethsemane it may have felt to everyone like leaving too soon. That's not always a bad thing; it can be what the right timing feels like.

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