According to a survey conducted by the Exit Planning Institute, a staggering 75% of privately-held business owners regret selling or transitioning out of their business within 12 months of the transaction.
How is it possible that owners are so disappointed just one year after what should be the happiest day of their life? There is a disconnect between their head and their heart.
Most business owners are analytical and driven by data and results. But, when it comes to matters of the heart, they typically (not always) blow it off and think ‘that will take care of itself.’ But it doesn’t.
Business owners must consider the practical and emotional factors that can lead to disappointment after an exit. It is very different to go from a life of:
I promise you that golfing every day is not going to fulfill you. It might be a part of your new routine, but finding and designing your Next Chapter is critical to your business transition success.
PREScore is an assessment business owners complete to evaluate their preparedness to transition to a new role within the company or completely out of the business – and to do so with no regrets. As I mention in my video, PREScore also highlights unseen factors that could lead to regret if left unaddressed. If you are a business owner, take the assessment – it’s an invaluable tool to help you start developing your transition roadmap.
I advise owners to be careful not to get locked into only one path without considering all the other options. Getting this right is a critical part of post-transition satisfaction. Think about what will be best for you, your family, your employees, and your community.
There are 8 transition paths you could take:
Stop to compare the first option to the last option. How does that feel? They are at opposite ends of the transition spectrum. The first can be a source of pride and accomplishment while the latter can feel like disappointment and defeat.
There is one more key factor in successfully transitioning your business. It is figuring out what you are transitioning to vs transitioning from. This subtle mind shift is an important part of transitioning without regret.
Most business owners, if they are in relatively good health and begin their Next Chapter in their 60s, have nearly a third of their life still in front of them. Don’t wing this! Transition success is achieved by aligning your head with your heart.
Start thinking about your post-transition life NOW while you still have 3-5 years of runway to design a plan. It WILL be the difference to achieving those things that are fulfilling and important to you and your legacy.
BLOG | FAMILY DYNAMICS / GOVERNANCE
I’ve had my share of family business owners who avoid discussing this four-letter word to the point of pure denial, quickly ending the conversation when this word bubbles up. The word? E-X-I-T. It sounds so final. The brutal truth is that 100% of owners exit the business, yet only 50% – just 1 out of 2 owners – will do it on their terms...Read More
BLOG | LEADERSHIP
Many family-led companies hire business consultants to grow the business. Some even send their emerging leaders to personal development programs. But there is a gap – and it’s a BIG one.Read More
BLOG | PEOPLE / TALENT
The Golden 5% is the full expression of our ability, multiplied by our maximum possible effort, multiplied by our full contribution of heart. It is the performance equivalent of what we offer in a deeply loving relationship – the absolute best of ourselves. And yet, we rarely give it or reliably inspire the giving of it by others in organizations. Why?Read More
At Compass Point, we make it easy to get insights, training, tools, and articles straight to your inbox and help family business owners and their team continue to grow, learn, and lead.