Navigating the Exit: Financial Wisdom from Matt Ford, CEO and Co-Founder of Sidekick Money For many entrepreneurs, the exit is the light at the end of the tunnel. After years of hard work, innovation, and persistence, the idea of selling a business or transitioning out of its day-to-day operations is often seen as the ultimate reward.
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur United Kingdom, an international franchise of Entrepreneur Media.

However, the road to a successful exit is riddled with financial pitfalls, and making the wrong decisions can leave founders with far less than they anticipated.
Matt Ford, CEO and co-founder of London based Sidekick Money, has seen firsthand the financial mistakes that entrepreneurs make when preparing for an exit. Through his work at Pariti, a financial wellbeing startup, and now with Sidekick Money, Ford has learned how to avoid the traps that can derail an entrepreneur's financial future. In this interview, Ford shares his key insights on financial readiness, diversification, and planning for a successful exit. His advice offers crucial lessons for any founder looking to maximize their business' value while safeguarding their personal wealth.
The biggest financial mistake: All eggs in one basket
"When you're deep in the trenches of building your business, it's easy to put all your focus on one thing," Ford explains. "Your business becomes your baby. But when everything is tied up in your startup, it's risky. Honestly, it's like putting all your eggs in one basket."
Ford's biggest piece of advice to entrepreneurs is to start thinking about diversifying their assets early. "Even setting up a simple portfolio outside your business can make a huge difference if things don't go to plan," he advises. Entrepreneurs often get so immersed in growing their business that they forget to secure their personal financial future. By diversifying investments, founders can ensure that they are not overly reliant on the fate of their business.
This mentality of early diversification is key. Many founders make the mistake of waiting until an exit is imminent to start considering their personal financial situation, but this can lead to challenges that could have been avoided with proper planning.
Personal financial readiness: Resilience and backup plans
Ford's personal journey in the startup world has given him a clear understanding of the importance of resilience and financial preparedness. His experience with Pariti, especially when the company faced imminent cash shortages, showed him the importance of thinking creatively about financing.
"At Pariti, we were so close to running out of cash, but we focused on finding creative ways to keep going. We secured grants, built partnerships, and tapped into different funding streams," Ford recounts. "Having a backup plan for your finances isn't just smart, it's all about survival."
Being open to help and keeping a flexible mindset is also crucial. Ford emphasizes that personal financial readiness isn't just about how much money you have; it's about resilience and having the knowledge to pivot when necessary. The best entrepreneurs don't just put all their eggs in one basket—they build a safety net before things get tight.
Balancing business growth with personal wealth
Scaling a startup comes with a unique set of challenges. As a founder, every penny often goes into growth, and managing personal wealth seems like an afterthought. However, Ford believes that finding a balance is essential for long-term success.
"Let's be real, it's hard," Ford admits. "When you're scaling a business, it feels like every penny goes into growth. But what helped me was building a financial safety net in parallel. I used tools to invest outside the business and made sure I wasn't overly reliant on just one thing working out."
The key here is delegation. "Delegating where you can is a really important lesson," Ford adds. When scaling a startup, it's easy to focus all your energy on the business, but by working with trusted advisors and delegating certain tasks, founders can maintain a healthy personal financial strategy while still prioritizing the growth of the company.
Lessons learned: Tax efficiency and planning for the post-exit
In his early years as an entrepreneur, Ford learned the hard way about the importance of tax efficiency and having a solid financial plan post-exit. He suggests that one of the best things any entrepreneur can do is to think about tax efficiency long before an exit is on the horizon.
"I'd say it's all about tax efficiency and having a plan," he reflects. "Strategies like VCTs, ISAs, or even just being smart about how you use capital gains can save you lots of headaches later. It's not glamorous, but the earlier you think about it, the less stress you'll have post-exit."
In the aftermath of an exit, many founders are hit with unexpected tax burdens that can take a sizable chunk out of their proceeds. Ford's advice? Plan early, take advantage of tax-efficient investment strategies, and always be aware of how your financial decisions will impact your post-exit position.
Preparing for an exit: Start early
Many entrepreneurs wait until the last minute to start thinking about their financial plans for an exit, but Ford stresses that this is a mistake. The earlier a founder starts preparing, the smoother the transition will be when the time comes to sell.
"Don't wait until the last minute to think about your finances," he urges. "Seriously, start years before your exit is even on the horizon. Build a portfolio, talk to advisors, and get a handle on your options. Treat it like preparing for a marathon rather than a sprint. It's all about the long game."
By planning ahead, founders can ensure they are in the best position possible to maximize the value of their business, make informed decisions about their personal wealth, and secure their financial future.
Hybrid exits: Balancing business success and personal security
In recent years, hybrid exits—where founders retain some ownership or stay involved in the business post-exit—have become increasingly common. For founders considering this route, Ford advises finding a balance between ensuring the long-term success of the business and securing personal financial stability.
"Balance is key," Ford says. "Of course, you should focus on growing your business, but don't let your personal finances take a backseat. Diversify your investments, look into tax strategies, and make sure you're set up for the long haul. Your future self will thank you."
Retaining a stake in the business can be beneficial for founders who are passionate about the work they've started, but Ford's advice remains clear: don't lose sight of personal financial security in the process. A balanced approach to both business growth and personal wealth is the key to long-term success.
The gamble that paid off: Learning from risk
Entrepreneurship is all about calculated risk. Ford's journey has been filled with moments of uncertainty, but one stands out as a major lesson in the value of taking risks with a backup plan.
"At Pariti, we had two weeks of cash left, and it was terrifying," he recalls. "But we kept pushing, landed a deal with a big bank, secured a grant, and somehow pulled through. That experience taught me to take calculated risks but always have a plan B (and maybe C and D too)."
Ford's experience is a reminder that while risks are inevitable in the startup world, it's vital to be prepared for the worst-case scenario. The ability to pivot quickly and find alternative solutions can make all the difference.
Finally, Ford's advice for any entrepreneur preparing for an exit is simple but crucial: start planning early. Many founders make the mistake of waiting until the last minute to think about how they will exit their business, but Ford suggests this is a recipe for disaster.
"Start planning your exit way earlier than you think you need to," Ford says. "A lot of founders wait until it's crunch time, but if you've already got a senior team in place and a financial plan sorted, you'll be in a much better spot when the time comes."
By planning early and thinking about both the business and personal financial aspects of an exit, founders can ensure that they are not only leaving their business in good hands but also setting themselves up for long-term financial success.
The long game of financial preparedness
Matt Ford's insights offer a roadmap for entrepreneurs to navigate the often treacherous waters of business exits. From diversifying investments early to planning tax-efficient strategies, the key takeaway is clear: preparing for an exit should start long before the actual exit is in sight. By thinking ahead and building a strong personal financial strategy, founders can ensure that their success in business is matched by their success in life after the business is sold. In a world of uncertainty, Ford's approach offers a beacon of financial wisdom that every entrepreneur can learn from.