As a business owner, you are accustomed to, and perhaps even thrive upon, solving today’s pressing problems and pushing on to tomorrow. But have you looked beyond this week, this month, or even this year?
The average owner spends 80,000 hours building their company but only six hours planning its transfer. As a result, 80 percent of business owners fail to get top dollar when they sell.
Just as winning the lottery is not a vible strategy for achieving your dreams, nor is hoping to sell your business for enough money to support your future lifestyle. That is like winning a free lottery ticket on a drawing for a $1 million jackpot. They won, but they missed a much larger prize.
Use a business transition plan to control your exit and maximize your payout. Plan now when you will exit, how and for how much, rather than leaving it to chance.
1) Search your soul. Take a look at yourself, your family, your business and your values.
2) Analyze your situation. What have you already done right and what needs to be done?
3) Identify your objectives. Set informed goals based upon your work in the first two steps.
4) Review your options. Chances are you have several options available and likely one will be the best.
5) Create your transition plan. At this point it can almost write itself.
6) Optimize your business. Build business value by eliminating as much as possible the company’s dependency upon you.
The sooner you start planning your exit, the smoother your transition will be when it arrives. Start planning now to transition on your terms later.
