Prepare Yourself and Your Company for the Future.

When You’re Ready to Leave, Will Your Business be Ready?

We enjoyed a casual conversation with a woman business owner, in her mid-forties, about her 4 year old company and her plans for expansion.  She was quite excited by her prospects and we encouraged her to pursue her dreams of growth.   Eventually, the conversation turned to our business and we relayed our passion for helping owners successfully exit their businesses.  Her eyes went wide as she exclaimed, “I’m not going to leave my business! Having heard such retorts before, we gently offered that everyone eventually leaves, either by selling or, passing to the hereafter....

It’s common that we are so immersed in our current affairs that we don’t reflect on our future until it suddenly arrives.  Then the questions begin.  Do I have enough money to retire?  How can I sell my company?  What will I do if I’m not working?  Here’s an opportunity, right now, to answer those three questions.  For a few moments, stop reading.   Now answer those three questions.  Write the answers down. This brief exercise alone can be the beginning of a rewarding exit strategy.

Remembering that every business will be sold, one way or another, via liquidation or a planned sale/transition, here are key questions future owners will ask when conducting their due diligence in evaluating the desirability of you company:

1. How well will your business operate without you?
2. What is the longevity of your key employees and how likely will they remain?
3. What systems, procedures, and written guides do you have in place which a future owner can use as a template for continued successful operation?
4. How detailed and accurate are your financial statements?
5. What is your revenue trend?
6. What is your gross profit margin trend?
7. What real estate / lease terms are available that will ensure the company can remain in its current location?

All future prospective owners must have a high level of confidence that their enormous investment of personal and financial capital will be adequately compensated should they choose to buy your company.  Those seven questions must receive encouraging responses.  While you likely began your company with little money, from a dream and sweat equity, you now have an enterprise of substance, possessing the potential of being well paid for your efforts and funding a solid retirement.  The operative word in that last sentence is “potential.”  To realize that potential requires that your business is able to satisfy discriminating buyers.  

Prepare yourself for the future while simultaneously readying your company.

If you are among the 10% of business owners who have already prepared their company and their personal lives for the inevitability of life’s transitions, congratulations!  If not, ignite your planning today. Perpetual Business can help. https://perpetualbusiness.co/