Exit Strategies

Business owners who know that focus is
key to their success often do not rely upon
this basic premise when structuring their exit
plans. Both during the exit planning phase as
well as the execution phase, it is critical to not
‘check out too early’.

Only about 30% of family-owned business
usually survive into the second generation.
12% make it to the third generation and only
3% make it to the fourth generation or
beyond.

Business owners take their business
personally. So if you were to look to court a
potential partner, would you want the dating
service that put you in front of the most
prospective matches or would you want the
one that got to know you the best and sought
to make more of a quality match?

It is a fact that a privately-held business will, in most cases, represent the largest financial asset in a business owner’s personal portfolio. This newsletter is written to have business owners consider a simple question – ‘how correlated is your business value to the overall economy?’.

As you consider your exit from your business, you need to answer two questions on this topic. First, ‘how dependent is my company on me’, and next, ‘who will do my job when I leave?’

When it comes time for a business owner to contemplate an exit from their business, it is important to consider the differences between a ‘good business’ and a ‘good investment’. The next owner of your company will be looking for a ‘good investment’, not just a good business.

Business owners who run their own
businesses tend to wear many hats, handling
many different jobs at any given time.
Successful owners build teams around them
to complement their skill set and strengthen
their capabilities.

When considering a successful exit from your privately held business, it is important to develop a proper ‘exit mindset’. An ‘exit mindset’ is one that encompasses the past, present and future of a businesses’ potential.

Business owners are successful because they understand the concept of ‘return on investment’. They know that they need to get more out of an investment than they put in so that they can have positive growth in their companies.