If you’re a business owner looking to retire soon, chances are you have a lot on your mind. You might be asking yourself:
- Am I really ready to retire?
- Is my business worth enough to warrant a buyer?
- If I do sell, will what I get be enough to help me live in retirement comfortably?
- What are my real concerns? Am I afraid to sell my business?
If you’re having these thoughts, you’re not alone.
Statistically speaking, nearly 80% (or 4 out of 5) of small businesses listed each year will not sell. Furthermore, of the 20% left over that do sell, over 60% of those owners regret their decision within 6 months of selling. Why? Because they have no purpose and no plan.
What’s worse it that approximately 50% of business that are sold are distressed sells. A distressed sale means you are seeing your life’s work sold without you receiving maximum value for the hard work and sacrifices you made to build your business. You aren’t leaving on your terms and your financial future is now uncertain.
So it can be easy to see why selling a business can be nerve racking. This is why business owners need to ask themselves “What is holding me back from making prudent decisions about the future of me, my family and my business?”
Am I ready to sell my business?
Business owners spend decades building up the business. For many it has been their main, if not only, source of livelihood for a long time. They don’t know what they would do without their business. They worry that, if they sell, what they have built will be destroyed.
The first thing you need to understand is that these concerns are valid. What you want to do next is relax, take a deep breath, and ask if you are in fact ready to retire.
- Are you overwhelmed with running your business?
- Have you grown bored and want to start a new adventure?
- Do you want to spend more time with your family vs working?
- Can you stop running the business yourself because you are financially stable enough to let it go?
- Do you maybe just want to take some money off the table?
If you answered yes to a few of these questions you might be ready to retire and sell your business.
But what will I do once my business is sold?
Figuring out what to do after your business is sold can almost be as challenging as selling the business itself. Retirement has many levels of bliss, but it might not be everyones cup of tea. This is especially true if you’ve spent decades building and running your business to the point where you think you don’t know anything else.
No worries here! Just because you sell your business doesn’t mean you have to settle into living life on the beach (although that is a pretty tempting offer for many).
Several business owners sell their business to start a new venture consulting in their previous industry, focus on charitable activities, get involved with non for profit boards, or tackle their “bucket list” They get to spend more time with their family and they are still filled with purpose from a new business venture. Because of this, they get the best of both worlds.
How can I start the business selling process?
Whether you’re absolutely certain you’re ready to sell, or you just want to better understand the exit planning process, you should work with an expert. At Blue Sky Exit Planning, we offer a free 1 hour no obligation consultation to go over everything involved in the exit planning process.
Are you prepared to invest an hour of your time to learn how you can benefit from learning about how the Exit Planning process can guide and assist you, your business and your family? To schedule a no cost, no obligation email me at firstname.lastname@example.org
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