Whether you’re selling, scaling, or handing off the reins, a smart transition starts with brutal honesty about where your business stands today.

Here’s the deal. You’ve built your lending business from the ground up. You’ve put in the work, navigated the ups and downs, and now you’re thinking about what’s next. Maybe you’re considering selling, maybe you’re wondering about a successor, or maybe you just want to ensure you’re ready when the time comes.

Here’s the kicker: This could very well be the biggest deal of your life. But getting it right isn’t about being perfect. It’s about understanding where you are, identifying what’s working, and figuring out what needs a little TLC before you make your next move. You’ve worked hard to get here, and now it’s time to take a hard look at where you stand to ensure the next chapter is just as successful.

I’m not claiming to have all the answers. I’m still figuring a lot of this out myself. But one thing I know for sure: The smartest operators in the industry are the ones who plan ahead. Let’s talk about how you can start planning your future—whether that’s a sale, a partnership, or a transition to new leadership.

What’s Your Next Move?

At some point, you’ll ask yourself: “What do I do now?” Here’s the truth: You’re not alone in this. Whether you’ve built a solid team or are doing it solo, the first thing you need is clarity. Succession planning isn’t one-size-fits-all; it’s about evaluating where your business stands today and pinpointing areas that need work to get you to where you want to be.

To help you get started, take a look at the accompanying self-assessment tool. Remember, this isn’t about “doing it wrong.” It’s about acknowledging where you are now and identifying where you can improve for a smoother transition.

Self-Assessment Tool for Private Lenders: Where Are You Now?

Take a few minutes to think about the following areas of your business. Rate each one on a scale of 1 to 5, with 1 being “Needs Significant Improvement” and 5 being “I’ve Got This Covered.”

Revenue Consistency

Are you generating steady, predictable revenue? Do you have multiple sources of income, or is everything tied to a few key deals?

Revenue is inconsistent; it fluctuates widely.

A few key deals drive the revenue, but there’s uncertainty.

You have a mix of steady clients, but certain deals still drive revenue.

Revenue is mostly steady, with some fluctuation based on market cycles.

You have multiple income streams, and revenue is consistently predictable, no matter the season.

(What to Look for: Steady vs. sporadic income, diversification of deals, consistency across different cycles.)

Loan Portfolio Quality

How solid is your loan portfolio? Are your loans diversified? Do you carry any high-risk loans that could be a red flag for potential buyers?

The portfolio is risky, with few diversified loans or high-risk deals.

Limited diversification; you have some high-risk loans that could raise concerns.

A mix of solid loans, but still a few risky ones that may need attention.

A good balance of loan types and low-risk deals.

Strong diversification across loan types, geographic regions, and industries; with minimal high-risk loans.

(What to Look for: Diversification in loan types, geography, and borrower types. Risk level analysis for potential buyers.)

Operational Infrastructure

How well is your business running day-to-day? Are there processes in place that would allow it to run without you? Or is everything dependent on your personal touch?

Everything depends on you—there are no processes in place to scale.

Some processes exist, but you’re still very hands-on.

Most day-to-day operations are handled by your team, but you’re still required to make critical decisions.

Strong systems are in place, and the business can run without you for short periods.

The business runs smoothly without you, with well-established processes for all functions.

(What to Look for: Does the business operate independent of your daily input? Can others step in and run things efficiently?)

Management Team

Do you have a strong leadership team in place that can manage things when you step away? Or does the business revolve around you?

The business relies entirely on you to lead, and there’s no real management team in place.

There’s a small team, but they need your direction for key decisions.

Your leadership team is solid but lacks experience in running things without you.

You have a solid team, but certain functions still need your oversight.

Your leadership team is capable, experienced, and can run the business in your absence.

(What to Look for: Leadership depth, autonomy of your team, ability to handle growth without you.)

Brand and Reputation

Do people know who you are, and do they trust you? Is your brand solid in the market, or does it need refinement?

Little to no brand recognition, and your reputation may need work.

Some recognition, but your brand is weak compared to competitors.

Your brand is trusted, but it could be more refined or polished.

Strong brand recognition and solid trust in your market.

Your brand is well-known, trusted, and consistently associated with quality in the industry.

(What to Look for: Public perception, brand consistency, market visibility.)

Growth Potential

Is your business scalable? Could it grow with the right support and capital, or is it plateauing?

Growth is limited; the business is stuck and can’t expand.

There’s some room for growth, but significant barriers exist.

With the right capital and resources, there’s potential to grow.

You can scale with minor adjustments and investment.

The business is primed for significant growth with the right support, and there’s room to expand.

(What to Look for: Market opportunity, scalability of operations, barriers to growth.)

Exit/Successor Planning

Have you started thinking about your exit? Do you have a successor in mind, or are you considering a partnership or roll-up strategy?

No clear plan—this is a distant thought.

A vague idea but no solid plans in place.

You’re considering your options, but nothing concrete yet.

You have a general exit strategy and successor options in mind.

A detailed exit plan is in place, and you’re actively preparing for the transition.

(What to Look for: Clear plans for succession or sale, steps you’re already taking toward a transition.)

Grading Scale

Tally your scores to see where you land.  Good or bad, you’re now headed in the right direction.

31-35: A+—You’re in the Fast Lane. But don’t let up; keep refining.

25-30: B+—Time for Refinement. A little fine-tuning, and you’ll be ready.

20-24: B—Strong Foundation, But Work to Do. Focus on improving key areas to level up.

15-19: C—Focus on Key Areas. Critical areas need attention before you’re ready for an exit or partnership.

Below 14: D—Lay the Groundwork. You’ve got the passion, but the fundamentals need work. Start with the basics to lay a stronger foundation.

What’s Next?

Now that you’ve taken the self-assessment, what’s next? The key is to take actionable steps based on your score. Whether you partner with a third-party professional, a trusted advisor, or your team, start making intentional moves toward that graceful exit. You’re not doing this alone. Make it happen.

Whether you’re planning to exit next year, in five years, or 10, the earlier you start, the better prepared you’ll be.