Exit Preparation 8. The Exit Journey - an emotional roller coaster
This may not apply to you, but in my experience, it is a phenomenon that profoundly affects more SME owners than you might think. You’d assume that by the time you’ve decided to sell up, you’d have already gone through all the “feelings” about it that you’re ever gone through.
Not true in most cases. I’ve watched business owners who have been very clear about the decision to go become grief-stricken through the process. In many ways it’s a bit like getting divorced.
Absolutely the right decision, but when he/she moves out, suddenly there is something missing. Getting up in the morning to no sound, no-one going about their morning rituals. It feels like a huge gap in reality.
We are creatures of habit and when we have been mainlining “the business” for so many years, even if we’ve become sick to death of it, it is still in our DNA and hard to shift. There is a reason I’m making a big deal out of this. Owners who have unresolved feelings about their business can unconsciously sabotage the preparation process and, make life an absolute misery for the team and unsettle a prospective buyer.
Exiting a business is a pivotal moment for any SME owner. It's not just a financial or strategic decision but a deeply personal one, especially in New Zealand, where SMEs form the backbone of the economy and the community.
The process of leaving a business one has nurtured from inception carries significant emotional weight, posing challenges that are often as daunting as the logistical aspects of the exit itself.
This article delves into the emotional challenges faced by SME owners in NZ during the exit process and outlines strategies to minimise the emotional toll of this transition.
The Emotional Landscape of Exiting
For many SME owners, their business is not just a means to an economic end but a reflection of their personal identity, values, and life’s work. Exiting, therefore, can feel like losing a part of oneself. This emotional landscape is marked by several key challenges -
Loss of Identity - Many owners identify strongly with their business. It represents their passion, commitment, and hard work. Stepping away can trigger a crisis of identity, leaving them questioning who they are outside the context of their business.
Fear of the Future - Uncertainty about what comes next can be paralysing. Owners may worry about their financial security, relevance, and ability to find new purpose or challenges that engage them as deeply as their business did.
Guilt and Responsibility - There’s often a profound sense of responsibility towards employees, customers, and suppliers. The fear that these stakeholders might suffer due to the transition can weigh heavily on an owner, fostering feelings of guilt and apprehension.
Emotional Attachment - Emotional ties to the business, its mission, and the journey can make the idea of leaving feel like abandoning a cherished part of one’s life.
Regret and Doubt - Doubts about whether selling or exiting is the right decision can plague an owner, compounded by worries of regretting the decision in the future.
Strategies to Minimise Emotional Pain
Addressing these emotional challenges requires a comprehensive approach that acknowledges the complexity of the transition and seeks to mitigate its impact. Here are strategies SME owners can employ to ease the emotional journey of exiting their business -
Early and Open Communication - Begin discussing exit plans and intentions with family, close colleagues, and advisors early in the process. Open communication fosters a support network that can provide guidance, understanding, and emotional support during the transition.
**Seek Professional Counselling **- Engaging with a psychologist or counsellor experienced in business transitions can provide a safe space to explore the emotional aspects of exiting. They can offer strategies to cope with stress, identity shifts, and the process of letting go.
Create a Personal Transition Plan - Beyond the business exit strategy, develop a personal plan that outlines goals, interests, and activities for life post-exit. This plan can serve as a roadmap to a fulfilling future, reducing fear of the unknown and providing direction and purpose.
Focus on Legacy and Impact - Reframe the exit as an opportunity to ensure the business’s legacy and continue its impact under new leadership. This perspective can shift the focus from loss to contribution and continuation, providing a sense of pride and accomplishment.
Gradual Transition - If possible, plan for a gradual exit that allows for a phased handover of responsibilities. This approach can ease the process of detachment, providing time to adjust emotionally and mentally to the change.
Engage in Mentorship - Offering guidance and mentorship to the successor or other entrepreneurs can be a fulfilling way to remain connected to the business community and leverage your experience in a meaningful way. It allows for a sense of continuity and contribution beyond the direct involvement in the business.
Cultivate New Interests and Challenges - Actively explore new hobbies, interests, or volunteer opportunities well before the exit. Engaging in activities outside the business can help diversify one’s identity and sources of fulfilment, making the transition less daunting.
Maintain Social Networks - The business often provides a social structure and sense of community for owners. Maintaining and expanding social networks outside the business can alleviate feelings of isolation and provide emotional support during and after the transition.
Celebrate the Journey - Organising a celebration or formal acknowledgment of your time with the business can provide closure. It’s an opportunity to reflect on the achievements, challenges overcome, and the journey itself, offering a sense of completion and gratitude.
Embrace the Process - Finally, acknowledging the emotional difficulty of exiting and accepting that it’s a process with ups and downs can help. Permitting oneself to feel and express these emotions, rather than suppressing them, is crucial for emotional health.
Conclusion
Exiting a business is a multifaceted transition that encompasses not just financial and strategic considerations but profound emotional ones. For SME owners in New Zealand, addressing these emotional challenges with compassion, planning, and support is essential.
By embracing the strategies outlined above, owners can navigate this transition with greater ease, ensuring that the legacy of their business continues while opening new chapters of personal growth and fulfilment. In doing so, they honour not just the business they’ve built but also their journey and future potential.
Just a reminder. If you are even considering selling your business, I encourage you to have a closer look at the RHQ SME Exit Preparation Programme. It’s six weeks of your life that could make a profound difference and remember, you can do it all without needing to take your attention away from either your business or your family and I will be on-hand to help with whatever you need.
Click [here] for a summary of what the programme is about.