Business Transition Blog

The Right Way to Exit: How to Transition on Your Terms

Posted by Lewis Hunter on Oct 4, 2017 4:02:29 PM

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.

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.

Just as winning the lottery is not a viable strategy for achieving your dreams, nor is hoping to sell your business for enough money to support your future lifestyle.

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.

Topics: business transition planning, exit planning for business owners

About this Blog

An international consulting firm, ROCG specializes in business transition and exit planning for small-and-medium-sized companies. We share our expertise through this blog so that you can build a more valuable business that does not rely upon its owners.

Our business transition specialists are particularly good at working with engineering design firms, CEI firms and other scientists and professionals whose firms work with public clients like federal, state and local government agencies.

This blog provides news and advice for business owners who are considering, planning or in the process of exiting.

Can Your Firm Thrive Without You?

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Failing to plan for the transition of your engineering firm could be costly.

Such steps as developing future leaders and standardizing systems are crucial to preserving your firm's value and positioning it for future success.

See how prepared your company is by taking a free business transition readiness assessment.

 

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