3 Habits That Can Sabotage Your Exit Strategy

You’ve decided it’s time to retire, time to get out.  Good for you. But Beware:

Exiting your business is like going on a family road trip.  The destination may be set, the course mapped out, the pool bartender alerted to your ETA. But you can suddenly find you are stuck in the driveway, with a car load of bickering family members.  What seemed like a good idea can start to feel impossible.

 

The same is true for even the simplest tasks involved in exiting your business.  For example, imagine that a potential buyer is interested in your business but has questions about your customer base. To help increase your company value you decide the sales and operations teams need to change the customer relationship management system. Seems simple enough. Right?  But if you are like many business owners you might find that as soon as you suggest this all you hear is grumbling in the hallways, complaints in the break room and drama all around. 

It can leave you thinking “If I can’t get the small stuff done, how will I ever get out?”

You are not alone. Many business owners get stuck by the ‘people problems’ when starting down the road to exit.  But you don’t have to stay stuck, if you know:

The 3 misconceptions which can sabotage your exit

1. Small changes are no big deal.
2. Keeping secrets is OK.
3. The secret to success is to Just Do It!

Not paying attention to these misconceptions is like not paying attention to the basics when planning your family trip. Before you call in a mechanic to rebuild your engine you might want to check the obvious first: gas, oil, air in the tires, keys? 

The same is true for your business. Before you start diving into the perfect upgrades to your record keeping system or how to avoid taxes when you exit, it pays to start with the basics. And just like you can’t go anywhere without your keys, you can’t exit without paying attention to the number one obstacle to a smooth transition- the way most people handle change.

If you want to transition out of your business smoothly, then you must be a change savvy leader.

People hate Change

A small change may seem like low hanging fruit, but don’t underestimate its impact on your employees. A small change, even one beneficial for the entire company, can invoke fear and anxiety.  That’s because our brains are wired to approach the known, and avoid the unknown.  As humans we find comfort in routine because it is low risk, and it’s easy.  When asked to change that routine, we resist it. Often people get consumed with negative thoughts about the change, ‘what if I don’t know how to do it?’ ‘Why do I have to change? Why don’t they start first?’, ‘This seems too complicated. The old way was easier.’ The key is to remember that people are avoiding the change because it is unknown, not rejecting the change because it really is a bad idea.  Your challenge is to get them to approach the change positively.

Fear stops us in our tracks

One way to shift employees’ perception of a change is to bring them behind the curtain.  Remember how Dorothy, the Lion and Scarecrow shook from fright when the Wizard of Oz spoke?  Not knowing who the Wizard was, and why he was issuing such commands, was terrifying.  But once Toto revealed the secret of the Wizard, his requests lost their power to intimidate. So too with your exit plan. If your employees don’t understand the why behind the new process, there is little motivation to get on board.  Although revealing your complete plan may be premature, providing context and the benefits to everyone will minimize the avoid response, and engage the coveted approach response.  Obviously, it makes more sense to emphasize the carrot than to simple bellow “Bring me the witch’s broom!”

This leads me to the final misconception, which is about issuing commands. 

People don’t do what you tell them to do- they do what they want to do

‘Just do it!’ is a fine slogan for Nike, but a lousy communication approach for any leader.  As we all know, adults don’t respond well to directives (again think about the Wizard). Rather, once employees understand what needs to change and why, the next step to getting them fully on board is to ask them HOW. How would they do it?  You set the objective, but you let them weigh in on how it gets done. Providing this sense of control minimizing their avoid response, encouraging them to approach an opportunity to influence the outcome. Seek input to stir up enthusiasm.

Getting unstuck is really quite simple if you remember these tips:

1. Approach/Avoid is a natural response to change.
2. An understanding of why the change, and what’s in it for me, reduces resistance.
3. Offering control will encourage change participation.

So, whether you are just dreaming about your exit journey, or you have started down the path, take time to do a quick inventory: what needs to change, why and how. Then make a list of actions you can take to avoid the 3 Misconceptions, and approach your transition with confidence.

Please feel free to come back and post a comment with your results, and which actions were the most helpful. I would love to learn about how you thrive during times of change.