For many business owners, the thought of selling or exiting their business can be overwhelming. Questions about profitability, valuation, and long-term sustainability often arise, leaving owners uncertain about their next steps. This is where Exit Factor of Minnetonka steps in—providing a clear, strategic approach to help business owners grow their businesses and plan for a successful exit. 

We sat down with John Dale, President of Exit Factor of Minnetonka, to discuss how his company supports business owners through the Exit Assessment tool and a structured advisory program. 

What is Exit Factor? 

Exit Factor is a national franchise owned by United Franchise Group, specializing in helping small to mid-sized businesses improve profitability, streamline operations, and increase their valuation. John Dale operates a Minnesota location, serving the southwest suburban Twin Cities area. 

John, a retired CPA with 30 years of experience, found his passion for Exit Factor after realizing that many business owners struggle to transition out of their businesses successfully. He describes Exit Factor as having a “brother-sister relationship” with Transworld Business Advisors, another franchise under United Franchise Group that specializes in business sales. However, as John explains, some businesses are simply not ready to sell when they reach out to Transworld. This is where Exit Factor comes in—to help business owners prepare their companies for sale, increase value, and close the gap between expectations and reality. 

The Exit Assessment: A Critical Starting Point 

One of the most powerful tools offered by Exit Factor is the Exit Assessment, a B2B evaluation that provides business owners with a comprehensive status report on their company's current value, profitability, and growth potential. 

John explains, “The Exit Assessment is a tool that paints a picture that the business is currently at ‘A’ and would like to get to ‘Z.’ It documents a plan to move the business from A to Z by using the Exit Factor online educational curriculum and the expertise of a Business Advisor.” 

This data-driven report includes both quantitative (financial metrics such as revenue, profitability, and valuation multiples) and qualitative (business structure, leadership team, customer diversification) components. The insights gained from this assessment allow business owners to make informed strategic decisions about growth and exit planning. 

More Than Just an Exit Strategy 

One of the biggest misconceptions about Exit Factor is that it only helps owners prepare for an immediate sale. However, John emphasizes that the program is about building value and sustainability, whether or not an exit is on the horizon.  Preparing and planning today.   

"A lot of business owners don’t have an exit plan in place, but every business owner will eventually exit—whether voluntarily or involuntarily. The question is: Will you exit on your terms?" John states. 

Through Exit Factor’s structured five-phase program, business owners work closely with experienced advisors to improve their financial performance, operational efficiency, and long-term viability. The program offers three levels and approximately 30 modules, guiding business owners through a step-by-step process to improve their company's market value. 

Common Challenges and How Exit Factor Helps 

Business owners face several challenges when preparing for an exit, and Exit Factor addresses these head-on: 

• Unrealistic Valuation Expectations
  Many business owners overestimate the value of their business. The Exit Assessment provides a realistic valuation and a roadmap to close the gap between their desired sale price and a market value. 

• Owner Dependence 
  If a business is too reliant on the owner, buyers are hesitant to purchase it. Exit Factor helps streamline operations, build leadership teams, and establish processes so the business can function independently. 

• Lack of Exit Readiness 
  Some business owners are not ready to sell, either financially or operationally. Exit Factor assists in strategic planning to ensure businesses are positioned for a profitable and timely exit. 

• Changing Exit Plans 
  Interestingly, some owners who engage in Exit Factor’s program end up deciding not to sell because they’ve optimized their business operations and rediscovered their passion. John notes, “Sometimes, once owners put the right team and processes in place, they find they actually enjoy running the business again.”