In today’s economic climate, navigating the entrepreneurial journey requires an understanding of the prototypical phases that founders commonly encounter and the crucial strategies—and mindsets—needed to succeed.
The required business transitions enable company founders to navigate the opportunities and challenges that come with change, often fostering continued innovation and success in an ever-evolving marketplace. This includes when to exit from the business.
The necessary factors have recently been considered by business exit strategist Jerome Myers. He sheds light on eight prototypical phases, along with tactical guidance, to help founders perform at their best during what can be a vexing process.
By understanding these archetypal phases and employing these crucial navigational strategies, Myers says that founders can increase their chances of not only surviving but thriving in the ever-evolving business landscape.
According to Myers: “Whether you are leaving corporate America to start on your own enterprise or leaving a company you’ve built from scratch to focus on the next part of your impact journey, many face the same challenges. While the circumstances of each person’s exit differs, most if not all can be summed up in a few specific exit scenarios that every founder in today’s economy faces.”
Understanding the quintessential exit archetypes can prove critical in helping the founder perform at his or her best, according to Myers. His assessment of the primary eight is:
Exit 1: Exiting The Traditional Career Path
Myers says: “The first phase of this transformative transition is leaving a traditional corporate role or life path. This step involves wrestling with questions of purpose and ambition, and requires introspection and careful planning. The robust U.S. economic growth, represented by a 2.4% annualized rate GDP growth in the first half of 2023, provides a favorable tailwind for individuals making this transition. This stage probably will feel like the biggest transition for those doing it. It’s where all that you once knew is gone and everything feels foreign and new.) this should not be something that you run away from rather embrace. Given the stats above, right now might be the best time to take this leap.”
Exit 2: CEO 1.0 (Chief Everything Officer)
Myers finds: “In the next phase, founders embody the role of ‘CEO 1.0’ or the ‘Chief Everything Officer’. They are at the helm of their venture, crafting business plans, securing initial funding, and birthing their entrepreneurial dream. The thriving economic conditions, marked by increased consumer and government spending, and a rise in business inventory investment, further fuel the growth potential at this stage. This is the beginning of your next journey. The start of what you hope to accomplish. It is here where you visualize your dreams and begin to make them a reality. It’s time to embrace the unknown and make it seen.”
Exit 3: Product Manager/Thought Leader
Myers considers: “Founders then transition into a dual role of ‘Product Manager/Thought Leader’, intertwining strategic product management and thought leadership. They refine their business’s value proposition and engage with customers while sharing unique insights and ideas publicly. This role, critical in a growth-oriented economy, helps shape public opinion and add credibility to their venture. This is when your company begins being in the public eye, which leads to scale and widened adoption of the company’s solution.”
Exit 4: CEO 2.0 (Chief Executive Officer)
In terms of the leader, Myers notes: “Upon establishing their business, founders assume the ‘CEO 2.0’ role, overseeing the bigger picture, managing the team, and setting strategic directions. The presence of a solid jobs market, as evidenced by the addition of 209,000 jobs in June 2023, aids in attracting talent and scaling operations during this phase.”
Exit 5: Board Chair
From the view of the very top, Myers considers: “As ‘Board Chair’, founders step back from daily operations to guide the company’s strategic direction, ensure its financial health, and focus on stakeholder relationships. The rise in personal savings recorded in the second quarter provides financial flexibility for strategic growth and succession planning.”
Exit 6: Exit
For disposal of the firm, Myers advises: “The ‘Exit’ phase involves founders selling their business or stepping down from their operational role. In the current economic environment, with recession fears diminishing due to falling inflation and a robust jobs market, this phase can offer potentially significant financial returns.”
Exit 7: Building Your Post Exit Portfolio
On the question of what’s next, Myers explains: “Post-exit, founders diversify their wealth by building an investment portfolio in the ‘Building Your Post Exit Portfolio’ phase. The recent interest rate hike by the Federal Reserve, aiming to curb inflation, provides a favourable environment for investment in real estate, stocks, bonds, or other startups.”
Exit 8: Philanthropy and Legacy
At the end of the process, Myers explains: “The final phase, ‘Philanthropy and Legacy’, provides founders the opportunity to leave a lasting impact by contributing to causes they deeply care about. Despite the ongoing economic recovery, the role of philanthropy remains crucial, offering founders the chance to leverage their wealth for societal betterment.”
