There comes a time when you, as an owner, will exit your business. This could be the result of a strategic plan as retirement approaches, a son or daughter taking over, health issues, or possibly a liquidation event.
I am often asked, “When is the best time to exit?” The best exit (and most profitable) often comes in the form of selling the business.
Before you decide what’s right for you, let’s shed some light on a few variables that may drive your upcoming decisions:
- Ready to Retire. Let’s mention the obvious first. Many owners are north of 60 to 65 years old and financially able to retire. If you’re in that category, it may be simple—there are other things you’d rather be doing.
- Health Issues. About twice a year, I receive a call from an owner that goes something like this: We met 3 years ago at a show and swapped a few emails since. As you know, I haven’t taken any steps to sell. Two days ago, I went into the hospital with chest pains, and now the doc says I can’t go back to work. How quickly can you get me out of here? I’m shutting the business down in 3 to 4 months if you don’t get it sold by then.
This only happens to other people, right? With no exit planning in place, these unfortunate situations can be devastating for owners, their families, and valued employees.
- Changing Industry. For over 10 years, I’ve served specialty contractors. Any industry veteran will tell you it’s not the same industry as it was 15 to 20 years ago. Still profitable? Yes. Frustrating? Absolutely.
With time comes change for both markets and industries. At some point, every owner makes a conscious effort to fight the good fight. Others conclude it seems foreign, they’re tired of the grind and ready to get out. Neither is right or wrong if it works for you.
- Growth Outpaces Skillset. Typically, ‘doers’ start (or buy) their own companies. Plumbers start plumbing companies, electricians start electrical companies, HVAC techs…you get the picture. For many, ‘doing’ is the entry-level skillset required to own a successful small business. But, it’s been proven that the skillset to start a business is monumentally different than the skillset to manage and grow one.
Without this skillset evolution, frustration and burnout are typical. Thank goodness for industry experts and consultants helping cultivate ‘doers’ into managers and, eventually, leaders. Their guidance is often critical.
- Opportunity Knocks. Exit plans should change and evolve as your circumstances do. A simple yet solid plan contains answers surrounding a sale, now or years down the road. When the right opportunity comes-a-knockin’, it may catch you by surprise. That doesn’t mean you can’t be prepared.
As one of my clients recently said, “They must’ve thought we were the pretty girl at the dance.”
By getting a few questions answered, almost any business owner can prepare—not to mention build confidence and peace of mind. With a little effort, many companies can be the ‘pretty girl at the dance.’
6 Tips to Avoid Burnout as a Business Owner
Many owners experience burnout at some point in their careers. A key question should then be, “How do I avoid burnout?” Below are 6 essential tips to help avoid:
Delegate Effectively
Owners who struggle to delegate effectively will forever work in their business, not on it.
Get Expertise When Needed
Every owner has their core strengths. There is nothing wrong with the adage of playing to our strengths, but many take this as license to ignore their weaknesses. Admitting the need for help is the stumbling block.
Know Your Numbers
Some owners still rely on their gut. When asked even basic questions, it becomes apparent they don’t know. There’s too much at stake to ignore your numbers.
Prioritize Your Day
Owners can easily get frustrated over their work-life balance. It can be overwhelming, but it doesn’t need to be. According to Jack Welch, “There’s no such thing as work-life balance. There are work-life choices you make… and they have consequences.”
Remember What You Value
How long has it been since you looked in the mirror and took inventory of your values? What are your top 5 values? Do your actions and schedule reflect that list? If there are individuals on the list, do they know where they stand?
Schedule Down Time
If you’re like most owners, your schedule is overflowing. How effective are you while running at >100% capacity? Not very. Here’s a great trick- pencil in 30 minutes a day just for strategic downtime. With a little practice, it will quickly become the most valuable 30 minutes of your day to strategize, problem-solve, and gain clarity on the rest of your business.
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