Startup failure statistics vary widely, but even the rosiest numbers show more than 50 percent failing within five years. Startup founders often have obligations to many stakeholders, including family, employees, investors, and perhaps customers. So when they are forced to face the reality of their business’s failure, they have a responsibility to these groups to do everything in their power to optimize the process of exiting. This starts with understanding the various paths available to you before you have $0 cash in the bank. By that point, many potential exit opportunities will be off the table.

It all starts with communication. It is critically important to communicate regularly and consistently with your stakeholders from the day you l...