In our last blog we discussed two situations in which it’s better to stay in your business rather than exit. In this blog, we will be talking about the opposite: why too many owners stay in their companies beyond the time it would be useful and profitable to exit. The reality is, the vast majority…
We often talk about the importance of exit planning and setting an exit date, but there are cases in which it is better for the owner to continue with his business than to sell or otherwise transition it. Here we will discuss two reasons to stay in active leadership in your business. Reason #1: Your…
Creating and implementing good business processes is an excellent way to increase a company’s day-to-day productivity and profitability. It also lessens the risk of losing key knowledge if and when key workers retire or leave the company. For these reasons, it’s vital that owners create business processes and systems and train their employees on how…
Most business owners will put off exit planning even if they are serious about retiring or transitioning into something different. That’s because exiting a company is something the majority of owners do not have experience with, and it can seem very intimidating. We’ve talked about many of the challenges involved in exiting on this blog,…
Why do people start their own businesses? In a wide variety of polls and informal responses, entrepreneurs say that one of the largest reasons is so they can be their own bosses. Sixty-seven percent of American entrepreneurs listed that as a motivator. While enjoying independence and control is valuable to owners, it can be challenging…
Building a business is about building transferable value, or the value of the business minus its owner. When an owner begins a business venture, he will have goals for the company, both financial and personal. As the company grows and gets larger and more profitable, business value builds. The purpose of good exit planning is…
We have discussed the importance of exit planning and why owners should begin the process of planning sooner rather than later. In our last blog we talked about creating a plan for an exit in the same way owners make and follow traditional business plans to build their companies and increase their value. Before an…
It’s very useful to create a written business plan when starting a business or growing a business once it is established and profitable. Creating a written plan forces the business owner to think about goals and the steps necessary to accomplish those goals. It’s equally useful to have a written plan when exiting the business,…
If you are a business owner in a family or multiple owner business, you may have heard of buy-sell agreements. You may be unsure of what they involve or if they are helpful. Here we will discuss what a buy-sell agreement is and why your company needs one. What Is a Buy-Sell Agreement? A buy-sell…
Many business owners will assume they will sell their businesses to a third party when they exit the company. Some owners even start their businesses intending to find a larger, more capital rich company to purchase the business and allow them to retire early. One of the real advantages of third-party sales is the potential…