Posts tagged with: reinvention
Working in a vacuum, the assumption is that Exit Strategies Are Difficult.
Most CEOS assume exit strategies are difficult. That assumption discourages anyone who is considering an exit from getting started early.
As the CEO of your growing enterprise, it’s easy to be so consumed with the day-to-day operations of the business, that you never find time to think about your exit strategy (knowing it is going to be difficult). So naturally, it simply gets shuffled to the bottom of your TODO list and never rises to the critical path until it’s too late.
You can minimize how difficult your exit is by being proactive, starting early and committing to the bigger plan to achieve your ultimate goal. As a discerning entrepreneur, you know your business is your largest asset that you need to monetize if you are going to secure your reinvention (fka retirement).
Exit planning requires numerous conversations and then an integration of solutions in all the following areas:
- Peak performance
- Succession planning
- Contingency and continuity planning for management and leadership transition
- Business valuation strategies to make the business buyer attractive and buyer ready
- Transition planning to your reinvention (fka retirement)
- Tax planning for both the business and the CEO
- Estate planning goals and options from wealth advisors and insurance advisors
- Deal structure options both legally and financially
Your exit strategy will be specific to you, your business, your timeline and your goals.
- There is no ‘cookie-cutter’ approach.
- It doesn’t happen overnight.
The difficulty in exit strategies comes from the multitude of possibilities and recombinations you have to explore and choose from. That’s also where the fun and freedom come from.
How do you know when you or your business are ready for you to transition out of the business?
How do you know when you should get out fast or hold on for the long-haul? What business model will help you maximize the value of the business? Here is a starting point for exploring and considering when and how you might exit/sell your business.
This CEO Exit Readiness Assessment provides a short set of questions to highlight your current thinking, decisions, issues and options to get out of business.
- Is your business ready to be sold?
- Are you ready to get out, leave the business and move on to your reinvention?
- Who will buy your business – and what form will the transaction take: trade, cash, management buyout, private equity, VC, Employee buyout?
- What sort of seller will you be?
- Do you have the right team in place (staff and management)?
- Do you have the right set of expert advisors on your team?
- Do you know what it is that you don’t know? How do you know that you don’t know?
- Have you already planned your reinvention after you exit your business?
There are more questions to consider. Your answers here give you a baseline to begin developing your exit strategy and plan the steps and timeline to exit or sell your business.
From the outset of your business, start asking these questions as part of your strategic planning at least annually if not quarterly. Keep a log of your evolving answers as the company grows, your role changes and your team matures.
When you tie your long term goals for the business and your role to day-to-day decisions, you will make better decisions, faster, easier, with less complete information while minimizing risk.
To avoid exit planning errors and pitfalls that could potentially derail your exit transaction, email me with any questions you may have.
The question isn’t what to do. You already know that. It’s actually doing it that’s the problem.
Below are the typical excuses for not doing what you know you should, even if you’re highly motivated, even if you want something very badly, and even if you know exactly what you need to do to get it; if you’ve got these internal circumstances operating, you AREN’T going to be able to do it.
The 10 of the most common excuses for inaction, include:
Excuse #1: “I’m too stressed out.”
Excuse #2: “I don’t believe I can.”
Excuse #3: “I don’t have the time.”
Excuse #4: “I don’t have the energy.”
Excuse #5: “I’m too emotional.”
Excuse #6: “I’ll always be the way I am.”
Excuse #7: “I’m afraid I’ll make a mistake.”
Excuse #8: “I’m too sick.”
Excuse #9: “I’m too skeptical.”
Excuse #10: “I can’t do it alone.”
Whatever your particular challenge may be, if you can identify with the challenge of knowing what to do, but still not doing it, then I’ve got life-changing news for you.
These typical excuses can effectively paralyze you — making it virtually impossible for you to take the actions needed to create the change you know you need to, to exit your business on your terms, on your timeline.
In other words, even if you’re highly motivated, even if you want something very badly, and even if you know exactly what you need to do to get it; you’ve set up the barriers and you AREN’T going to be able to do it alone.
You can overcome every excuse, every barrier to get to where you want to be at the end of the year. You know where you are and you know where you want to go to make the next 2-5 years your best years yet. Make it happen, and break through every excuse, every justification going through your head so you can get out with the financial freedom for your reinvention.
Join us for this half-day seminar on May 15 in Framingham.