4 Questions All business owners should answer to have a successful output plan


The opinions expressed by the contributors of the entrepreneur are theirs.

While another holiday season will end, we hope we have filled our glasses with gratitude and have taken some time to appreciate our latest 365-day journey around the Sun. For me, the holidays are always a time of reflection In the life I built with lessons from my early teacher.

My father was a Polish immigrant who taught me the importance of patience and saving from an early age. A proud entrepreneur, he built a successful Brooklyn -based clothes company during his lifetime, which served as a bed in our community and provided our family. However, like many entrepreneurs who fall victim to unforeseen circumstances, he was forced to liquidate the business he had strictly built from land when the industry changed and work went abroad. Although painful, his story is why I am passionate about the help of other business owners to prepare for their exits.

While most professionals agree as much time as you can Plan your exit (Some say five to seven years; I prefer 10), the more successful it will be. In this article, I will focus on the questions with large pictures that business owners should reflect to achieve their goals and prepare for the next stage of life.

Connected: I specialize in output planning – you need to make these 5 moves before selling your business

1. What was everything about?

In the end, we always look back at the beginning. Which one was impulse for starting a business In addition to providing a living salary? Many of my clients list the ability to be their boss, have flexibility and freedom in their schedules and increase generating property as primary leaders.

Time time to apply the same retirement vision. Individuals are choosing more and more to continue working for The benefits of social and mental health. Taking a temperature check as the 10-year time limit begins to see how you feel to maintain any form of involvement in the company is an intelligent way to direct the overall exit strategy.

2. Does my business have a pure health bill?

Sometimes, we have pink -colored glasses when appreciating our individual and business health. Now is the time to be realistic in the name of longevity for both. By performing a Driver analysis (Strengths, weaknesses, opportunities, threats) can be especially useful to understand the current position of your business market, financial order and growth potential.

When you find weaknesses, look for ways to connect the holes. Can you spend the next few years by diversifying your income or presenting new offers? Where can technology support operational efficiency? According to McKinsey's reportBusinesses that adopt advanced analytics can improve them Ebitda up to 25%.

Investing in your business health (how you need your personal health) can make the difference between inheritance or destruction of your business.

Connected: How long do I need to sell my business? First, consider these 7 factors.

3. What offer can I not refuse?

Like selling a home, selling a business can be deeply personal, so care It will move far ahead to negotiating a fair agreement that constitutes decades of sweat capital.

Receiving a valuation It will help you understand a realistic price and the factors that buyers consider when evaluating a business. Employ an investment banker that can attract the right buyers or identify competitors who may also be interested in buying a business. Creating a detailed sales memorandum that underlines the strengths of your business, its financial performance and growth potential will also be essential for your business marketing for potential buyers. Business marketing with professional support behind it is a safe way to help bring about bids to the table.

4. Who can help me navigate in the process?

Building a strong team is an internal and external effort. Creating a success plan This describes how the business will work after the sale and identifies the leading individuals who can grow in the role can take many years to get right. Identify the roles and responsibilities of the new management team that will replace the current one and how they will be transferred under new ownership.

You will also need an external professional team to lead you. Choose Knowledge Advisors, including an accountant, Certified Exit Planning Advisor (CEPA), Financial Advisor, Business Advocate and Assets Advocate, to help you run through the sales process and all personal preparations. PRO Tip: Look at a financial advisor with their determination. Once you identify that person, they can recommend a lawyer. These individuals will be critical to helping you navigate negotiations, legalizations, closing agreements and tips on how to potentially reduce taxes and plan for the financial goals you have for the rest of your life.

Take time to interview teams and develop future talent now for a quiet exit in the years ahead.

Connected: Don't fall for these tricks: 5 things you don't have to do when selling a business

Don't let fear paralyze you

As an entrepreneur, you are likely to have spent your life growing your business in something very special. Movement can be filled with emotion and concern About keeping those years of tireless work intact and fruitful. But don't let the fear paralyze you and prevent you from having a plan. Drafting your strategy It is essential to give yourself the opportunity to increase the value of your business and find the right buyer. Keep the four questions above and the center, and you will be well on your way to a useful output from your business. If you can get anything from my father's experience – Hindsight is always 20/20.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *