How do you determine the value of a business? We discuss four methods for determining value, along with the variables and complexities that valuation professionals must factor in. You can address some of these factors ahead of time to set yourself up for the best result.
Ask a business owner over the age of 50 when they plan to transition or exit their business, and you’ll get one of two answers:
– a blank stare, or
– “I’ll work another 5-10 years and call it quits.”(And if you ask this person again in another 5-10 years, you’ll likely get the same answer!)
The bottom line is the same – most business owners lack a plan for leaving their business. Read the article to learn what goes into an exit plan.
It can be a self-perpetuating cycle: a business owner tells me she knows she needs to delegate so she can create bandwidth to plan ahead. But she can’t hand anything off because she hasn’t documented her processes which would allow someone else to follow the same steps and get similar results. Why hasn’t this happened? Because she doesn’t have time because she has so much on her plate.
Read the article to learn how to break this cycle and get out of your own way.
Before we begin our deep dive into successful exit planning, we pause to look at the bigger picture. A successful exit will require you to overcome multiple barriers, all of which are interconnected. The good news is we know what the most common barriers are, and by doing this work, you will also build a stronger business.
What if we told you that thinking about your exit in the future actually helps you solve the problems you’re facing today in your business much more effectively? It’s true, and it’s why we’re so passionate about exit planning for business owners. This month we published the first of many articles on what exit planning is, why it’s so important, and when to start. If you need one reason to read, make it this:
80% of businesses put up for sale do not sell, and of the 20% that actually sell, only 14% achieve the desired sale price.
Want to be one of the <3% of business owners who realize the benefits of business ownership? Read the article to learn how.