This week “exit strategy“When we start a business, we talk about knowing when the right time is to quit. This is a talent that many entrepreneurs have not mastered. Getting to the top is hard!
Peter Shankman’s first major exit, The Geek Factory, grew out of a perception that both he and the market had become complacent. He knew that when a task started to feel «too easy,» it was time to move on to the next step. This comfort, while comfortable, was actually a warning sign that innovation had stalled.
If you find yourself moving forward without challenge or excitement, this could be a sign of stagnation in your own engagement or in the market itself. Especially in fast-moving industries, complacency often precedes decline. Shankman also paid close attention to market trends, recognizing early signs of the dot-com bubble bursting. It’s important to stay aware of these changes and be honest about your business’ growth potential.
When Vocus, HARO’s largest advertiser, offered to buy his company, Shankman didn’t wait for the «perfect» deal that would never happen. He advises entrepreneurs not to reject great proposals while pursuing imaginary better ones. Regularly evaluating the trajectory of your business and your own passion will help you recognize the right moment to take action. If either one begins to weaken, it may be time to consider an exit.
Exploring Sales: Due Diligence, Monetization and Transfer
Selling a business is as much an emotional process as it is a financial one. Shankman’s experience highlights how important it is to balance preparation, patience, and perspective. During due diligence, founders often feel personally attacked by the level of scrutiny. But as Shankman points out, the process isn’t about you, it’s about the business. Trust your attorneys and advisors to protect your interests rather than micromanaging every detail.
When it comes to making money, clarity is key. Shankman’s contract was based on measurable metrics such as revenue, audience growth, and continuation of service, making it easy to track progress. Remember, once the sale is complete, control passes to the buyer. It is important to accept this new reality and new role.
Letting go can be one of the hardest parts. It’s natural to feel a loss, but once a deal closes, the business is no longer yours. Prepare emotionally for this transition as carefully as you prepare financially. Whether it’s a new business, a sabbatical, or a personal project, make a plan for what you’ll do next so you can move forward with purpose.
Balance of founder involvement and business independence
Buyers are attracted to businesses that can succeed without a founder, but founder involvement is still important to maintain quality and vision. Shankman advocates building systems and teams that can operate independently, while also allowing founders to «cultivate and protect» the brands that specifically bear their names.
He suggests finding a balance between supervision and autonomy. Getting involved, even for a few hours a day, helps preserve standards and culture. But it’s equally important to know when to step away. If you can’t emotionally separate, now might not be the right time to sell.
Before you leave the company, document your systems thoroughly, delegate effectively, and gradually reduce your day-to-day roles. This transition period will not only put potential buyers at ease, but it will also help you adjust to life beyond your day job.
The power of personal branding beyond business
Many entrepreneurs have a hard time letting go of their identity because it is so tied to their business. Shankman avoided this by cultivating a personal brand that extended far beyond any single company. By sharing his interests, including skydiving, travel, and public speaking, he showed that a founder’s influence doesn’t necessarily end with sales.
A strong personal brand can open the door to new ventures and make the transition much smoother. Stay visible even after you exit by writing, speaking, or consulting to maintain momentum and relevance. The important thing is to start early, long before you plan to sell. Then you will already be known for your wider expertise and passion, not just within the company.
Neurodiversity as an entrepreneurial advantage
Shankman is very open about how ADHD, once considered a challenge, has transformed into one of his greatest strengths. His experience highlights that neurodiversity can be a competitive advantage in entrepreneurship. Many groundbreaking innovators, from Steve Jobs to Elon Musk, have similar “different wiring” that fosters creativity and original thinking.
Leaders must recognize neurodiversity as an asset and build inclusive workplaces that value different cognitive styles. Companies like Morgan Stanley, Adobe, and Google have clearly benefited from hiring neurodiverse talent, as this perspective fosters innovation and powerful problem-solving.
It’s important to fight stigma. Shankman’s story of feeling «broken» as a child until he was reassured highlights how powerful positive messages can be. For teams, training and flexibility are key. Standardize diverse approaches to work and thinking by providing neurodiversity training, designing adaptable roles, and sharing stories of successful neurodiverse individuals.
The takeaway for neurodiverse entrepreneurs is simple. Accept your wiring as your superpower. If you’re a leader, make it your mission to identify, support, and advocate for neurodiverse talent.
- Regularly evaluate your engagement and market positions to know when to exit.
- Don’t wait for the mythical “perfect” proposal. Good opportunities rarely come twice.
- Prepare emotionally and practically for due diligence, monetization, and loss of control after the sale.
- Organize your business while maintaining sufficient engagement to maintain brand integrity.
- Build and nurture a personal brand that transcends your company.
- Embracing neurodiversity within yourself and your team can spark amazing innovation.
- Support neurodiverse individuals through encouragement, flexibility, and awareness.
Listen or watch the full episode.
