THE ONLY Reason To Go Into Business...And The Unexpected Events That Can Derail You

The only reason to get into business is to get out!  That might sound cold, might seem too corporate, might even seem contrary to your core values…but trust me, getting out of your business on your terms is what every owner should have their eye on.  Getting your exit payday for all the blood, sweat, and tears is the reward we all keep working towards. However, the unfortunate truth is 50% of all exits are NOT voluntary.

Life is inherently messy.  There are life events that can throw a wrench into exit and transition plans.  Just like the guy in the Allstate® commercials, these things come along and create ‘mayhem’.  Would your business (and family) survive all of them? Let’s take a look at the 5D’s:

Death – Who is going to run the company if you don’t show up tomorrow?  Will employees stay? Will the bank continue to support the business?

Disability – Will the company keep running profitably if you can’t work?

Divorce – It happens. Will the impact ripple out beyond the immediate family to affect the lives of your employees?

Distress – Loss of a key customer could decrease your business value by 50% or more.

Disengagement – The #1 reason owners want to get out is burnout.  Can you afford to exit?

Given that these are generally ‘unplanned’ events, the only way to prepare your business for them is to start now with a focus on the main value drivers of your business.  If your business is always in the best position to sell or transition, no matter what happens, you are ready and you can make the transition on your terms.

Transition and succession are processes, not events. Stop thinking that this is something you’ll have time for when you are ready to leave the business.  The data shows it’s not likely to work out that way.