Exits can come in all forms, whether it be a job, relationship, marriage or even a business endeavor or investment. I am sure most would agree having a good ‘exit plan’ for any situation or scenario would be considered ‘best practice.’
I was recently introduced to a gentleman, Robert Green, who authored a book titled “The Better Exit,” essentially detailing the many reasons one should have an ‘exit plan’ when it comes to selling a business.
My interest in the book grew immensely as for years, my business mentors have consistently stated, “Lisa, you need an exit plan where The SHOWER SHIRT Company is concerned.” My usual response was, “My goal in creating this company was to help breast cancer patients shower after mastectomy surgery. I did not invent this product for financial gain.” The products inception was a cathartic effort to help me through my own breast cancer diagnosis.
Thus, I was not ever interested in hearing (or discussing) an exit plan. Further, I did not have a corporate business vision; it was always more of an emotional, philanthropic, vision. Bottom line, I did not listen to advice, until one day, I was ready to sell. I then asked myself, “What’s my plan?” At that moment, I realized I should have made note of those many business-minded individuals who advised me to design an exit plan, years ago.
An excerpt from The Better Exit, references the Business Enterprise Institute, which states, “At least 66-percent of businesses in this country don’t have a written and updated transition plan.” Which means, like me, they have no exit plan in place.
Despite the investment of time and energy, most business owners neglect one of the most critical aspects of their entrepreneurial journey, planning for their eventual exit. While most are so consumed with the day-to-day demands of running their company, they fail to plan for the day when they will no longer be at the helm.
Additional statistics on the consequences of poor exit planning are sobering:
• Only 20-30 percent of businesses which go on the market to sell end up with a transaction, according to BizBuySell.com.
• The most common business exit action is liquidation, which often brings pennies on the dollar.
• The average business loses 20-50 percent of its value during a rushed, unprepared exit, according to the Exit Planning Institute.
• Over 80 percent of business owners do not know what their business is worth, according to the Business Enterprise Institute
• 98 percent of business owners have no written tax strategy for exit.
• Finally, unprepared owners pay 30-50 percent more in capital gains taxes than planned exits, according to the Department of Treasury.
Conversely, appropriate exit plans yield:
• 43 percent more buyer inquiries.
• 62 percent higher valuations.
• 89 perecent success rate in transitions (compared to 34 percent without planning), as also referenced in The Exit Planning Institute, 2024 study of 2,500
As one of my business mentors, Jeannette Kraar, so eloquently stated, “The Better Exit” is an essential guide for business owners who want to maximize value and avoid costly missteps when selling their company. The book provides a roadmap of valuation drivers, financial ramifications, tax implications, and the importance of building an exit-ready business.”
So, the moral of the story is, planning your withdrawal plan, is about making decisions for the future, now. Whether your planned exit is two years or twenty years away, implementing solid business principles will help you build a more valuable, more sellable business. For more information, go to www.thebetterexit.com.
On a bittersweet note, I am happy to announce, after 14 years, The SHOWER SHIRT Co. has just been acquired. With that announcement, I am also thrilled to say the product is in great hands with the new owner, Aleksandra Efimova, a global entrepreneur who has had a stronghold on multiple female brands for nearly thirty years. I feel confident Aleksandra and her team will continue to care for those hundreds of thousands of breast cancer patients who need The SHOWER SHIRT™ after surgery.
So, as one important chapter of my life closes, another chapter has just opened, and I mean literally. Within days of beginning sales negotiations, I was approached by a book publishing company requesting me to publish an inspirational autobiography on my breast cancer survivorship and invention of The SHOWER SHIRT™.
The upcoming autobiography, titled, “Beautifully Unbroken:” A Life-changing Invention Born of Loss, Cancer, Courage and Faith,” is scheduled for publication Spring 2026; to follow our Beautifully Unbroken launch page, click here. To check out the upcoming book, go to www.lisashowershirt.com.
by Lisa F. Crites, BS, MBA, PhD(hc)