Most small businesses or family-owned businesses are not ready to be sold because they are too dependent on the owner running and working in the business every day. As a result, millions of business owners will never be able to tap into the wealth they have tried to create after years and years of effort.
Here are three requirements for being able to sell your small business for top value or be positioned to retire with peace of mind and security (click here now to take a free assessment and find out):
In contrast, business owners who are able to sell their companies for top dollar go beyond these beliefs. They are willing to surrender full control. They don’t need to micromanage. They are open to hiring people smarter than they are, and to giving them the resources and time to develop professionally.
#2. You have a plan in place to recruit, retain, and develop people who can keep the business growing without you. Building a successful business starts with a strong foundation that makes it possible to develop a pool of talent who can run the company without you. Elements of this plan include:
#3. You have an ongoing succession planning process to keep challenging and preparing your team. If you have the above requirements in place, the final piece of the puzzle is an ongoing succession planning process. Succession planning is not a one-time event to replace a retiring business owner. It is an ongoing approach to identifying top talent, developing them, and challenging them to move up.
Small businesses that have these three essential ingredients in place can keep on growing. They give the owner more time to spend on strategic issues and setting high standards. They allow the owner to take long vacations and have a great life outside of work. Most importantly, they make the company more valuable.
Small businesses that don’t do the above will not sell – eventually they will wind down, and the owner will lose out on a huge potential source of wealth.
Sometimes the help of an outside advisor can make a huge difference in being able to sell your business– now or in the future – for top dollar to an enthusiastic buyer. The Center for Sustainable Strategies specializes in this area. For more information, contact us at Christina@christinahaxton.com or call (970) 387-8935 or click here to take a free assessment to see if your business is ready for SUCCESSion or sale.
Do you know Jack?
Jack is a recently-retired-highly-successful-former-CEO of a Fortune 500 Company.
Like most smart leaders, Jack planned ahead to ensure he would leave his company in good hands, and carefully chose and groomed his successor years before his retirement party.
At the top of his game, he was a competitive typical Type A high achiever who was respected by many (and feared by some). Before he retired, his wife described him as a “workaholic.” Now she says he has too much time on his hands and six months into his retirement, he is “driving her nuts.” To make matters worse, the kids are making rude comments under their breath, “Mom, there’s a grumpy stranger living in our house!” In other words, Jack’s now become a bit of a pain in the a**. He’s gone from “Hero to Zero” in his own castle. And Jack can only play so many rounds of golf (or tennis) before it’s just not as much fun anymore.
Fast forward, a few more months into retirement: Jack now feels restless, dissatisfied and somewhat useless. His family doesn’t “snap to attention” like his employees did when he walked into the room. In fact, they often disappear. To make matters worse, Jack’s wife has her own interests – without him. She spends time with her friends, enjoys her part time job at the hospital and has recently taken up scuba diving. Jack is also notices they snap at each other more, short conversations are sprinkled with biting sarcasm and now they occasionally argue loudly in front of the kids.
Jack thinks to himself, “If this is what retirement is like, I’d rather be back at work!”
The problem: While Jack responsibly prepared his company for his exit, Jack failed to prepare himself, and his family, for his re-entrance. Jack’s wife was right. He was a workaholic … and for a good reason: Human nature. Jack spent much more time at work because with his title came a strong identity, a purpose and a sense of accomplishment (and a big paycheck). Whether he spent less time at home because he didn’t feel as accomplished and purposeful as a father or husband as he did being a CEO, or the other way around, who knows? It doesn’t matter what came first, the chicken or the egg.
Jack wasn’t a bad father or neglectful husband. He was still an ordinary man, just human. Because, as “just humans” we will naturally spend more time doing what is familiar and what makes us feel good, than where we don’t feel as rewarded. Gradually, we spend more and more time at work and less and less time at home. To compound the problem, we naturally prefer to avoid the discomfort or conflict we are having at home, actual or perceived, and spend more time where we feel more satisfied. Unfortunately, Jack sees evidence which only supports his “theory” that “they (i.e., Jack’s family) don’t give me respect.”
The solution: Become the CEO of YOU before retirement. Jack’s transition back into family life would have been much more successful and satisfying had he started his Personal Transition Plan at the same time he started his succession plan. Had he done so, Jack (and his family) would have found the re-entry to be much smoother.
If you are like Jack, what hobbies, interests or “someday goals” can you begin explore, cultivate or even take action on now that can be in full swing by the time you officially retire? What are you willing to do now to build (or repair) relationships with your spouse or your almost-grown-kids so you aren’t “the grumpy stranger in the house?”
Here’s my challenge to you now: Prepare yourself for how you will answer the question: “What do you do?” after you are retired. Will you be able to answer with ease and confidence … even though you are without a title or a job? Hint: If you can answer the question: Who are you? you will have this one in the bag![sharebox4 sharetext=”Share This Page”] [/sharebox4]