Most business owners focus their time and energy on the business itself—building revenue, managing operations, and solving daily challenges. But when it comes to preparing for the future, there’s a critical truth that many overlook:
A business cannot stand on one leg.
Long-term success—and eventual transition—rests on three equal supports:
Business, Personal, and Financial.
These are the Three Legs of the Stool™, and when one is missing or unstable, the entire structure wobbles.
The Origin of the Model
The Three Legs of the Stool™ is a foundational concept within the Value Acceleration Methodology™, developed by Christopher Snider, CEPA®. It reflects decades of research into what truly drives successful—and significant—business exits.
In the 2023 National State of Owner Readiness Report, the Exit Planning Institute found that while awareness of exit planning has improved, most business owners still focus heavily on business readiness while neglecting personal and financial preparation.
That imbalance leads to frustration, delayed transitions, and missed opportunities.
Leg 1: Business Readiness
Your business must be transferable, attractive, and valuable.
That means it can run without you and maintain predictable results. To achieve this, focus on strengthening your intangible capitals—your people, processes, and relationships.
- Can my business operate for 90 days without me?
- Are my systems documented and repeatable?
- Do my customers depend on the company—or on me personally?
If the answer to any of these is “no,” the business leg of your stool is weak. That’s where the Value Acceleration Methodology™ comes in: it helps you create structure, reduce risk, and build transferable value.
Leg 2: Personal Readiness
Personal readiness answers the question: “Am I emotionally and mentally prepared for what comes next?”
For many owners, identity and purpose are tightly bound to their business. When it’s time to transition, they struggle with the idea of letting go.
In Walking to Destiny, Snider reminds us that successful owners define their next act before they exit. They envision how they’ll spend their time, pursue passions, and continue creating impact.
If you haven’t yet articulated what life looks like after your exit, this leg is missing—and no financial plan can compensate for it.
Leg 3: Financial Readiness
The third leg ensures you can afford the life you want post-transition. This involves understanding your Wealth Gap—the difference between what you need to live comfortably and what your current assets (including your business) are worth.
You can’t close that gap by saving alone. Most owners bridge it by unlocking the wealth trapped in their business—through growth, sale, or succession.
Without a solid financial plan, owners often sell too early, too late, or for less than they need. Aligning your wealth plan with your business and personal goals keeps your strategy grounded in reality.
Bringing It All Together
When all three legs—business, personal, and financial—are aligned, owners achieve what EPI calls a “significant exit.”
- Maximizes business value,
- Provides financial security, and
- Creates personal fulfillment.
But when one leg is missing—say, strong profits but no post-exit plan—the outcome may look successful on paper yet feel hollow in practice.
Practical Steps to Balance the Stool
- Assess your readiness. Take stock of each area separately.
- Quantify your Wealth Gap. Identify how much value your business must generate to fund your goals.
- Document your personal vision. Write down what success looks like for your next chapter.
- Integrate your teams. Align your CPA, wealth advisor, and value advisor to keep all legs in sync.
- Review annually. Your goals—and your business—will evolve. So should your plan.
In Closing
Your business is likely your largest asset, but it’s also the key to your freedom.
Balancing the Three Legs of the Stool™ ensures that when opportunity comes—or when life demands change—you’re not forced to choose between wealth, legacy, and purpose.
