“Action is the foundational to key to all success” — Pablo Picasso
Sometime in the future, you’ll want to transition from the daily running of your business or simply want to sell it. Maybe you’re there right now and are not sure how to exit – gracefully and with your future in tact.
You’re not alone!
UBS, a multinational investment bank and financial services company reveals, “48 percent of business owners don’t have a formal exit strategy.” (Q1 Investor Watch Report).
Its never too late to create an exit plan for your business. However, the earlier you start, the better the transition can be for you, your team and your clients.
Most business owners see their financial future tied to their business. I have worked with clients that have not built a solid team or created enough value into their business to have anything to sell. Others have sold their business only to see it loose value within a few years because the buyer did not carry on the heart and skill of the founder.
According to Christopher Snider, of Exit Planning Institute (EPI), “recent surveys of business owners by EPI show that many owners have little to no exit planning in place and owners are woefully unprepared for this event that is likely to occur within the next 10 to 15 years.”
You can write a better story!
Starting now, you can consider the options you have and prepare for an exit plan on your terms and that meets your objectives.
Here are actions you can be taking now:
- There are a number of ways to transition out of your business – selling it is only one of many options. Find out what options are available and begin considering which is right for you.
- Transitioning begins now by keeping track of the way you do business AND raising up people to carry on the branding, heart and quality you want.
- Determine what YOU want for your future – do you want to be connected or do you want to be out? Do you want a revenue source or a lump sum?
What’s needed to have peace of mind?
Clarity about what you want and a plan to execute your vision are the two main ingredients. It’s just like any other project — you need to have an objective and a series of steps on a timeline to get there.
Consider engaging a professional to help you think through and plan this critical aspect of your business.
Price Waterhouse Coopers interviewed over 300 business owners who had sold or exited their businesses within the previous 12 months. Surprisingly, 75 percent regretted their decision to leave and only 5% were happy with their net proceeds. Why?
- Some thought they might have left money on the table.
- Others worried that their timing had been off—perhaps they should have exited earlier or held on longer.
- A third group reported not understanding their options, or not hiring the right advisors.
- All owners said that if they could sell their business again, they would be better prepared.
The common theme that united all these people was that they hadn’t done enough homework. They weren’t prepared!
Start thinking and planning today in order to have the future you want for tomorrow!
To your success,
Karen Logan & Team Renaissance
PS: We can help you create an exit plan to accomplish your objectives. Contact us for an appointment.