Timing Is Everything

Selling the business you worked long and hard at building is no easy decision. 

Many business owners seem unable to let go of their company and wait too long. Some lose their entrepreneurial drive and the business starts sliding. Or the market starts to change and the company loses value. To get the maximum price, owners need to do some serious planning to prepare selling the business at its peak.

Planning for what is typically the biggest financial event of your life is worth your time and effort.  It should not wait till the day you hand-over the keys.

Why is planning so important?  It illustrates who you are and where you want to be, it will help you prioritize, it guides you along the way, and it keeps you focused.  Most importantly, it can help protect and perhaps build value in your business.

In the early stages of your plan you should document your goals.  More than just daydreaming about the day of retirement, actually write down what your income needs will be.  Start to quantify what you need from the sale of your business and establish your optimal age to execute your plan.  Know Your Finish Line!

Your goals should include more than just numbers.  What are your personal goals?  Is the business’ legacy important to you?  What about your kids, how would they be impacted by your transition?  Decide what is optimal and work from there.

Once you have decided where you want to be, start working on step two, diagnose your business.  We’ll talk about this step in more detail in future blogs.

Along the way secure the services of a good business broker/exit planner to help you navigate through your exit plan.  Sound guidance when it comes to goal setting, strategic planning, and the step-by-step execution of your plan can go a long way to maximize your financial payout and achieving the goals you originally documented. 

Do you have small business questions you would like answered about this article or others?  Please visit www.VRWindsor.com or call 519-903-7807. 

William Sivell is a sales representative of VR Windsor Inc., Business Brokerage; his blog appears every Tuesday.

Bereavement is a Symptom

With the growing number of owners of established businesses reaching the retirement age of 50 years old or older, it is likely that many will be ready to leave their business within the next decade or so.  What have you done to plan for that day?

Planning for what is typically the biggest financial event of your life is worth your time and effort.  It should not wait till the day you hand-over the keys.

Exit planning is not mysterious, time-consuming, nor just a clever way to sell you another product.  It is, however, a way to help you achieve your financial and lifestyle objectives.

One of your first steps in your plan should be to take a hard look at yourself!

Building a business is an emotional commitment.  Your whole life is wrapped up with your business.  Your partners, suppliers, customers and staff become part of your extended family.  Many business owners mourn the loss of status and purpose that running a company can bring.  Most imagine that financial security is what they wanted, but find out establishing, building and meeting the challenges along the way mattered most.

Business owners who successfully and happily make the transition typically have plenty of friends, hobbies and outside interests.  They devote more time once they have left their company to these efforts.  They donate their money and more importantly their knowledge to good causes.  They spend time with their family and devise a worthwhile second chapter rather than a desolate retirement.

If you do not prepare yourself for life after your business transfer, you will not truly enjoy the fruits of your labour. 

Take the first step in your plan and image what your days and weeks will be like without being first to the shop…. How will you feel?  What hobbies would you spend more time at?  Are their charitable causes you could devote a regular part of your week or month too?  Have you discussed your plans with your family?

Finally, secure the services of a good business broker/exit planner to help you navigate through your exit plan; it can be good preventative medicine.  Although there are no guarantees, sound guidance when it comes to goal setting, strategic planning, and the step-by-step execution of your plan can go a long way to maximize your financial payout and minimize the likelihood of seller’s remorse, after you transition out of your business. 

Do you have small business questions you would like answered about this article or others?  Please visit www.VRWindsor.com or call 519-903-7807. 

William Sivell is a sales representative of VR Windsor Inc., Business Brokerage; his blog appears every Tuesday.