I was standing in front of a room full of business owners at a recent event when something interesting happened. I asked what I thought was a simple question: “How many of you want to exit your business someday?”
Only about a quarter of the hands went up, which surprised me. So, I tried a different approach.
“Okay, let me ask this differently. What if an exit didn’t necessarily mean selling to some stranger and walking away forever? What if it could mean owning a business that still pays you well but doesn’t require you to show up every day?”
Boom. Most of the room raised their hands. That moment taught me something important: Most business owners aren’t opposed to exiting; they’re just thinking about it all wrong.
When most people hear “exit,” they immediately picture handing over their keys to some corporate buyer and never looking back. That feels scary — like giving up on something you’ve poured your life into. But here’s what I’ve learned working with custom integrators and home service companies: There are five different ways to create what I call a “perfect exit.” And the crazy part? You prepare for all five in exactly the same way.
Also by Matt Bernath: Letting Go to Grow
Let me tell you about two conversations I had last week that perfectly illustrate this.
The first conversation was with my buddy who runs a property management company and works maybe an hour or two a day. His business is incredibly profitable and basically runs itself. He’s had multiple offers over the years to sell, but kept turning them down because the business spins off so much cash annually that he could afford to be picky. He just accepted an offer that’s going to make him very, very happy.
The second conversation was with a 57-year-old custom integrator whose health issues are forcing him to sell. The problem? His business is completely dependent on him showing up 10+ hours a day. He’s getting offers — honestly, more than his business is probably worth — but it’s still only about 30% of what it could be worth if it were properly set up.
The difference between these two guys? The first one did the work over time to build something that could run without him. The second one stayed trapped in the technician mindset.
The Five Paths I’ve Seen Work
- Path 1: The Cash Cow. Don’t sell at all. Build a business that you don’t want to retire from; one that funds your lifestyle and other investments. I know an integrator, a VITAL Member, who runs a small shop — maybe 10 to 15 employees, $2-$3 million in revenue — but they’re pulling out $400-600k annually after paying themselves. His wife runs their real estate portfolio. In 20 years, real estate will make the integration business optional.
- Path 2: The Family Legacy. Pass it to your kids. But here’s the test: If you dropped dead tomorrow, could they run it from day one without missing a beat? Most family businesses fail because the founder never properly set up systems for succession.
- Path 3: The Employee Handoff. Sell to that trusted tech or salesperson who’s been with you for years. Yes, you’ll probably carry a seller’s note. Yes, it might be for less than market value. But you’re setting someone up for success while still getting paid for what you built.
- Path 4: The Strategic Sale. Sell to the CI business down the street who wants to expand, or to one of those consolidators everyone’s talking about. These buyers often want you to stick around and might give you equity in the larger operation, which could be a win-win depending on your situation.
- Path 5: The Financial Buyer. Sell to private equity or investment groups; people who see your business as a solid investment. These can come with high multiples, but they’re also the most complex. Remember: Day one money is the only guaranteed money.
The Uncomfortable Truth
Before we get too excited, let’s talk about reality. According to the SBA, 80% of small businesses fail within 20 years. Failure doesn’t mean “sold for less than hoped.” It means closed the doors, walked away, got nothing.
So, when I hear someone complaining that they “only” got 30% of what their business could have been worth, I want to shake them. You know what 80% of business owners get when they exit? Zero.
Any sale is better than closing up shop. Any transition that puts money in your pocket is a massive win.
Custom Integrators think their situation is special. They think the normal rules don’t apply. They think they can’t possibly extract themselves because “no one else understands the business like I do.”
I get it. You started this thing. You know every client, every vendor, every quirk of every project. But that’s exactly the problem.
The businesses that sell well — the ones that create real wealth for their owners — all have one thing in common: they can operate profitably without the founder as the central figure. This isn’t about being lazy or checked out. It’s about building something bigger than yourself.
The Three Things Every Successful Exit Requires
Whether you choose Path 1, 2, 3, 4, or 5, you need three things:
- Sales Certainty: You need leads coming in regularly, systems that maximize those opportunities, and a closing process that creates predictable results. Being “referral only” feels great until one bad job nukes your reputation or your builder goes out of business. I can’t tell you how many integrators tell me proudly that they’re “referral only.” That’s awesome — I hope you’re taking cash out regularly and investing it elsewhere, because referral-only businesses are nearly impossible to sell.
- Trusted Team: You need systems for hiring good people, plans for future growth, and leadership skills that develop other leaders. Here’s the truth that hurts: The growth of your business is capped by your growth as a leader. When you stop growing, the business stops growing.
- Profitable Production: You need consistent, profitable operations that don’t require your constant intervention. If you’re still the bottleneck in every decision, you don’t have a business — you have an expensive job.
The Timeline Nobody Wants to Hear
Everyone asks me: “How long does this take?” The fastest I’ve seen someone go from “everything depends on me” to “this could sell for maximum value” is two years. The reality for most? Three to five years.
I know that sounds like forever. But think about it this way: You’re going to be in business for the next five years anyway. You can spend those five years continuing to be stressed, overworked, and trapped. Or you can spend them building something that gives you real options.
Also by Matt Bernath: Transforming Operators to Owners
Here’s the irony: To build a business that doesn’t need you, you have to work harder initially. You need to document processes. Train people. Implement systems. Separate your personal expenses from business expenses (seriously, stop running your boat through the business). Develop the leadership skills to manage through others.
It’s front-loaded pain for back-loaded freedom.
When you do this work, you’re not just preparing for an exit — you’re building a better business to run today. Less stress, more profit, actual vacations, and the confidence that comes from knowing your business could survive without you.
My Challenge to You
So, which path appeals to you? The beautiful thing is that you don’t have to choose today. Build a business that could work for any of these scenarios. When the time comes — when the offer is right, when your circumstances change, when opportunity knocks — you’ll have options.
Most business owners never get that luxury. They get one path: closing the doors and walking away with nothing. But if you’re willing to do the work now, you can join the small percentage who get to choose their ending.
The question isn’t whether you want to exit someday — of course you do. The question is whether you’re willing to build a business that makes a perfect exit possible.
For more insights like this, check out The Flywheel Effect podcast, where Brent and I dive deep into what it really takes to build a business that works without you. If you want to prepare for an eventual exit, book 15 mins with the VITAL team, and we’ll help you determine your Next Right Thing.
