Let’s face it, planning for the transfer or sale of your business can be as enjoyable as going a few rounds with Mike Tyson. Sounds like fun, right? Despite what you may think, they have a lot in common:
- They both could be a little painful
- Having a game plan could dramatically improve your results
- You want experienced people in your corner
- The urge to run and hide could be overwhelming
So, what can we do to make planning for a successful business transition less daunting than a fight with a heavyweight champ?
We believe the answer to this question is just: Make It Simple. Call it paralysis by analysis or just not knowing where to begin; the more complicated and formidable a decision, the less likely we are to give it our attention. Just like that “To Do” item that has taken up permanent residence at the bottom of the list. it’s never getting done.
For our business-owner clients at the onset of transition planning, we start with 5 simple questions to help make this process so much easier.
Why is now the time?
What is it about right now that is motivating you to take action? Are we working on your timeframe or are our backs against the ropes? There is something that lit the proactive fire, and we need to harness that energy and excitement. It helps everyone involved to know, “Why now?”
What does the ideal picture of your future look like?
Let’s forget the dollars and cents for a bit and focus on you. Why are you doing this? What does the next phase of your life look like? What are you doing and what is making you the happiest? Challenge yourself to think big and consider what you want to experience next.
Who is going to be involved?
There isn’t a more important dynamic to successfully living that ideal picture than the people involved in this transition. At the end of the day, this process is going to be completed, step-by-step, by real people, including yourself. Who are they? Who are you hoping to benefit? Is your family involved? What impact will these people have and how will they affect your plan?
What are the obstacles that you know about?
Let’s get it out there for the world to hear: this process will likely be challenging! It is likely that you are aware of many of these challenges. Is there a family dynamic? Is the business profitable? Is it appealing to a buyer or the next generation? Do you need more money than the business is worth? It’s not the obstacles easily identified that cause most issues, but we have to plan for them before we move on.
Do you have walk-away freedom right now?
Could you leave your business today, receive nothing in return, and live the ideal future that you painted earlier? How important is it for you to receive maximum value? How much flexibility do you have in terms of buyout structure, sale price, and timeframe? All are big questions; so this is where we spend the most time with our planning clients.
Remember, this is about you living a great life and providing for others to do the same, if possible. That is where we want to start: You. For most people, there isn’t an easier place to begin.