Thinking about exiting your business is not an easy thing to do. For most successful owners, many years of seemingly endless hours have been invested and great personal sacrifice has been made. The business is also likely still consuming most of the owner’s energy to keep it on track and growing and there is likely an endless stream of problems to be dealt with.
All of that work to build something of value that you are likely relying on for your retirement. Your family and employees may be relying on the business to support their families and retirement as well.
Do you know how you will turn that business into the value that you need, deserve and have planned for?
Many owners that I work with have done little or no planning for how they will exit their business. Exit Planning is a little like putting your will together – it is easier to put it off than to confront the obvious but uncomfortable truth: You are going to have to leave your business someday.
The issue is often that we are victims of our own success. And that success makes it easier to simply continue to take the “downhill path”. Then one day you discover that what was working wonderfully a year ago is no longer getting the job done.
• Your product is not as relevant as it once was;
• Employees are not performing because they are not properly motivated;
• There isn’t anyone ready to step into a leadership or possibly ownership role;
• You don’t understand what your business is worth;
• You do not have the proper legal entity to aid in the transfer you want;
• Gross margins have been gradually eroded by vendors and customers;
• You have too much debt to be able to remove your obligations.
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