For business owners who are thinking about exiting their business in the future, there are many things to consider to assure the business transition happens in a smooth manner and accomplishes your personal and professional / corporate goals. Owners are wise to seek the counsel of advisors in this complex and delicate area. Your choice of experienced advice in this area can mean the difference between success and failure to reach your goals. Not only do you need to know which types of advisors to choose but also when to bring them onto your team. This newsletter provides the top three things to consider when building your exit planning advisory team.
This newsletter is written for business owners who may be thinking about planning the exit from their privately-held business but have not yet gotten started with the process. Business owners today are just starting to recognize that there is a unique service to help them with the exit planning process. We offer this information in an effort to help you, the business owner, continue to think positively in the direction of protecting your largest asset by doing this form of planning.
Many owners of privately-held businesses are not pro-active in planning for their exit and the company’s transition. This is true mostly because the ‘exit planning industry’ is nascent and many owners are simply not aware that a service exists to help owners with this complex issue. This newsletter is written to advocate the position that owners should be pro-active and should actively lead their exit plans by involving those that help them manage the business. An owner’s successful exit is an entry point for another owner to take the company to the next level, creating potential opportunities for the leaders in your organization. However, without leading the process, it is not something that you can rely on without proper planning. You might get lucky, but luck is rarely a solid strategy.
In any competitive endeavor there are two prevailing mindsets – there are those who are playing to win the ‘game’ and there are those who are playing not to lose. Business owners are playing the game of business. Each player in this game has quite a bit at stake because statistics reveal that the majority of most business owner’s wealth is tied to their illiquid businesses. Moreover these business owners are heavily reliant upon the income from their businesses for their lifestyle and livelihood. With so much at stake, owners need to ask themselves whether they are playing this game of business to win or not to lose – the answer can have a major impact on how successful you will be with a transition or exit from your business.
The success of exiting a business depends greatly upon the mental perspective and preparation of an owner during the exit process. Business owners tend to fixate their thoughts only on running and growing their business. However, there is a tremendous amount of value in seeing the ‘big picture’ with your exit and thinking about the future and where you would like both the company, and yourself personally, to end up. The owner who is able to see the larger picture, and understands that stepping out of a business is an opportunity to move both themselves and their company toward a new stage of life, will be best prepared to execute a successful business transition. This newsletter is written to help owners think through the ‘big picture’ and align their thinking and resources towards a successful exit.