In our last article we asked whether December is a good time to contemplate your business ownership, review what’s happening and determine a new course of action. Perhaps embarking on the final stage of your business ownership is on this year’s agenda.
If you’ve been able to step back from day-to-day activity and enjoy a period of reflection you may have wondered what comes next for your business and how you will navigate to a time when you are no longer the leader and owner of your enterprise. The ability to step back may be a good indicator that you have built sufficient depth and succession into your company to enable you to move into ‘exit planning’.
If you’ve not been able to take a break, possibly for the opposite reason that the operation is over dependent on you, you may have had fleeting thoughts about how you might change the situation or perhaps more existential thoughts about how sustainable the situation is and how long you – and your family – can put up with it.
The New Year is a time full of exhortations to make resolutions, improve health and habits, and become the ‘you that you want to be’. It is also for many a natural start of a new financial cycle with budgets to confirm, strategies to embed and hopefully renewed energy to make this year better than last.
If you are wondering how you will bring your tenure as business owner to a conclusion, perhaps in a few years’ time, start with a few simple questions to get your thoughts in order. We can help you with the process, both in asking the right questions and as importantly interpreting and making use of the answers. Here is a sample:
- How do you rate your motivation and energy to take the business to the next level?
- Describe the role you are currently performing. Do you enjoy it? Are you good at it?
- Think about your team: how confident are you in their ability to run the business if you were away for an extended period?
- Whether or not you had a break over Christmas are you looking forward to a healthy balance of time in and out of the business during the year ahead?
- What is your earning potential this year? Are you building personal wealth for the future, taking a true market rate package for the role you perform, or struggling to take from the business the money your value deserves?
- If you were to stop working in say five years, have you accumulated enough wealth and value in the business to give you the lifestyle you desire for the next stage of your life?
If you had the ability to design the final phase of business ownership as you’d wish it to be and in a way that gave you and your family the future you want, wouldn’t you jump at the chance? A well developed and executed exit plan can do this for you.
And that’s where we come in. Our proven processes and track record helping business owners give you the help and support you need to work out what you want from your business, how the final years of your ownership should play out and prepare you and the business for management succession and ownership transfer.
We aren’t business brokers simply looking to sell your business, so we can contemplate with you every possible type of exit and the one that best meets your personal ambitions. These include a management buyout, family succession, employee ownership trust, a trade sale, an investment or in very specific cases a closure. Our aim is to help you deliver your objective without getting influenced or overly focussed on one type of exit.
If the New Year is a time for new resolutions and commitments, talk to us about your future business exit – most likely you’ll only ever do it once and for your future it may be the biggest decision you will take.
Arrange a free informal conversation with Henchards to see what an experienced exit planning adviser can do for your business.
(Image by wirestock on Freepik)