You need an exit plan.
One day your business won’t be your business anymore. It may be difficult to realize this right now, but eventually it will change hands whether it be by selling the business, moving out of the day-to-day, handing it down to the next generation, sickness or death.
Because of this truth, you need to be proactive about the way you leave your business so that you can purposely achieve a desired outcome. If you don’t do this you’ll be relegated to a version of entrepreneurship where you’re constantly putting out fires, working only to pay the bills, always in survival mode, and never getting ahead. After all, how can you get ahead if you’ve never defined what “getting ahead” looks like?
How does a golfer know if she hit a good shot if she wasn’t aiming for anything? How can we achieve success if we haven’t defined it? How can you achieve happiness in your career when you are working a business with the only end in sight being your death?
May I be blunt? You need to capitalize on the value of your business before you die.
This is why you need a plan to purposely exit your business. You can do this a few ways!
1. Hand down the business to your children
What a beautiful way to leave a legacy! Although I love helping people sell their business, I have much admiration for those that get to leave behind a wealth-building tool for their children and grandchildren.
2. Delegate all operations to a management team
This is a great way to gain flexibility like that of selling the business, but keep a continual income. But not every business can afford to pay a management team and an absent owner. Another downfall is that although the owner does not have to work anymore, he or she is still maintains liability and ultimate responsibility. Delegating may be a great option for some, but you’re still not able to capitalize on the value of your business.
3. Sell your business
This is the best way to exit your business. If you are at the age of retirement, you can cash out, free yourself from all time constraints and liability, and spend the time you’ve always wanted to with your family and friends. You’ve earned this time. If you are still of working age, you get to take all that money from selling the business and pair it with the knowledge you’ve gained to start another business! You get to restart with more cash and more wisdom, creating an atmosphere for tremendous new success!
One day you and your business will part ways. Will it be on your terms?
If you want to begin planning the sale of your business, give me a call today!