Originally posted 10/23/2018
One fact I often site is that on average, 10,000 baby boomers in the USA turn 65 every day. This has been going on for the past seven years and will continue for another eleven years. This fact presents two major opportunities to the business world:
- What products or services does this huge portion of the population need as they become “senior citizens?” And they are living longer.
- Many Baby Boomers are business owners. Their businesses will eventually be sold, transferred, or they will use some other form of exit in the coming years.
This leads me to the main point of this blog … preparing businesses and business owners (even if they are not Baby Boomers) for their exit, even though they have no plan to exit soon. Here are the top six reasons you should prepare your business for exit:
- Maximize – A business that is prepared for the owner’s exit will be much more valuable than a business that is dependent on the owner’s day-to-day contribution to operations. During ActionCOACH training we learned that a business owners’ product is the business, not the product or service of the business. Therefore, we coach our clients to invest a major portion of their time toward working “ON” their business, rather than only working “IN” their business. An owner’s prime responsibility is to design and create a business environment that enables their team to succeed.
- Money – A business that is prepared for the owner’s exit will be more profitable than a business that is totally, or partially dependent on the owner’s involvement. Owners need to design their operations to maximize the leverage of their and the team’s time and talents.
- Time – The owner of a prepared business will have more time and freedom to pursue other interests, be they business or personal.
- Harmony – We all seek work-life harmony. A well designed, prepared business enhances their owner’s ability to achieve work-life harmony.
- Contribution – A well prepared business will deliver more value to its customers, clients, patients, team, owner and community.
- Protect – A business that is designed and built for the owner’s exit will provide protection to the business’ team and the owner’s family. There are too many instances of businesses that failed after an owner’s disability or death. The potential for destruction of value, jobs and fortunes is reason enough for you to prepare your business for your exit.
One of the main focuses of the ActionCOACH coaching process is preparing our clients and their businesses to be sold. If you wish to prepare your business for your exit and earn more money until you decide it is time to exit, my colleagues and I are ready to assist you.