The happiest departures occur when owners have more factors pulling them instead of pushing them out of their business.

Key Points

• There are many push factors that influence owners to want to exit their businesses: a magic retirement age, their business has peaked, they see the risk of having most of their wealth in one basket, they're bored, stressed, or are having health issues.
• The pull factors that draw owners away from their businesses include a desire to travel, get fit, spend more time with family and friends, create and work on a charitable foundation, and start a different business initiative.
• It takes a lot of pull factors to overcome the emptiness that owners often feel after they exit their businesses.

Download the workbook for Module 6

How do you know when you're ready?

Watch this video for inspiration on what might pull you into your post-business future.

Key Takeaways

• Push factors, such as boredom, health challenges, and stress tend to drive an owner out of their business, but to what?
• On the other hand, pull factors invite owners into something new. The new things are there for owners to transition into, not just out of their businesses.
• The most satisfied owners who've sold their businesses are those who have more compelling pull than push factors.

Next Steps

• If you haven't yet, please download the workbook for Module 6.
• Complete the assignment in your workbook for lesson 1.
• You are almost there! Hopefully, you have a new bounce in your step as you gain confidence and overcome any feelings of dread you may have had about your future exit.
• Move to the next lesson to listen to three stories of owners who wanted to sell their businesses.

Many businesses (about 70%) don't make it to market. Others do, but don't sell. Some owners make improvements, then decide they want to keep their businesses. Consider three owners' experiences we share in this lesson.

Key Points

• Achieving performance projections while responding to buyer requests for information, managing employee concerns, and coping with owner expectations can be exhausting.
• Due diligence often uncovers issues that have been long forgotten by current owners/leaders.
• External factors also contribute to the salability of a company.
• When your push factors get heavy, help is available to reduce those burdens. There are consultants and fractional executives that can serve in short-term assignments to bring your business to a healthy, even high-performing position.
• Sometimes the transition involves a hybrid of solutions to get to the desired outcome.
• Owner transitions don't always mean that the owner completely exits their business. Now and then, owners simply want a different role or fewer responsibilities. Defining goals and finding support to help you get there can make these dreams a reality.
• Owners have often built their businesses from the ground up and unknowingly baked themselves into every project and transaction. It's amazing what employees can do when they have the skills and information they need, and a vote of confidence from you, their leader.

What really happens?

Watch the following story: Lessons from an Attempted Third-Party Sale

Watch the following story: A Strategic Plan for a Family Transfer

Watch the following story: An Owner's Joy After Preparing Well

Key Takeaways

• The transition process requires a lot of energy. The process itself demands your attention in addition to conducting normal business operations and leading employees and owners through the uncertainty. (Hint: Start while you still have great health and energy!)
• Whether you make it through the closing (and how fast) depends on what's discovered during diligence, the timing of markets, tenacity, and a touch of luck! (Hint: Get on top of anything you can possibly control as soon as possible.)
• Just because you're ready to transition out, doesn't mean the critical stakeholders are ready for you to leave. You need to intentionally ready future leaders and the business as a whole. Bringing in outside talent, even in short-term assignments, can bring the needed skills and energy.
• Not all transitions go as planned, textbook-style. Be open to, even search for, solutions that work for your situation.
• Don't rule out a step-by-step withdrawal from your role and responsibility. Get serious about what you really want to do, and what you want your business to do for you. Then work to get there.
• Most owners are the heroes in their business. They know how to solve every problem, console unhappy customers, and get broken widgets to work. This is great until you're not able, or willing, to be there every day. Make it possible for your team to succeed even when you're not there.

Next Steps

• Complete the assignment in your workbook for lesson 2.
• Congratulations on your investment to start your preparation now. You have time to write your longer-term story, including how you'll exit your business so both you and your business will succeed!
• Move to the next lesson for an overview of how the Master Planning Process works and several support options.

The Master Plan can easily become a record of what was important to you back on the day you created it. The Master Planning Process ensures the Master Plan stays alive from the day you started.

Key Points

• Not all experts have the same experience. As you approach this once-in-a-lifetime, most-of-my-financial-eggs-are-in-this-basket transition, please seek experts that have guided other owners on this journey.
• The Master Plan includes your goals and plans to get there from where you are now:
  • LIFE goals (how you want to invest your Labor, Influence, Finances, and Experience).
  • Financial goals.
  • Legacy goals.
  • Business goals.
• The Master Planning Process keeps your Master Plan alive and includes these actions:
  • Uses an annual assessment to see how far you've progressed over the year.
  • Revises the plans as needed to stay on track for your goals.
  • 90-day sprints of action items that propel you toward your annual goals.
• There are three options to support you with your Master Planning Process:
  • Do-it-Yourself
  • Owner Mastermind
  • Full-Service

What help is available?

Watch this video to learn how the Master Planning Process works and support options you can choose from.

Key Takeaways

• You likely have experts you already lean on to advise you in your business. We don't suggest you replace them unless you are unhappy with their performance. However, we encourage you to augment them with experts who have extensive experience around exit/transition transactions.
• The Master Plan combines your personal and business goals and plans so you see how they support each other. The Master Plan ensures that things don't slip between the cracks.
• Annual assessments evaluate your current state each year, so you know how far you've come, and to set realistic goals for the next year.
• Since goals without plans are merely wishes, the 90-day sprints break your annual goals into actionable targets.
• You have enough information to start this process on your own. If you want to join a group of other owners in the same stage of business life, you might want to consider the Owner Mastermind option. And if you'd really just rather work your business, we suggest you find a qualified Exit Planner to take care of this critical transaction for you.

Next Steps

• Wow! By now, you've invested 15-20 hours to Get a Grip on the Value of Your Business. How does it feel? We believe you're ready to start your preparation now!
• Move to the next lesson to review the course and remind yourself, You Can Do This!

This lesson summarizes the entire course. Please feel free to jump back to prior modules for more information. Capture all your questions for our last roundtable session with all the experts.

Key Points

• Even though there is a common formula for calculating Market Value (Earnings x Multiple) there is a significant difference between how owners value their business and its value as perceived by buyers.
• Once you've considered your future, and the legacy you want to leave, you have an opportunity to grow the value of your business to provide the finances to meet those goals.
• Your business has value now, and you probably have additional assets. Don't lose what you have; start now by protecting your equity and your family. Also, select the KPIs that mean most to you and your industry, set them up, measure, monitor, and improve. The sooner you start, the more progress you can make.
• With every day that goes by, you can be increasing the value of your business, or you might be missing out on the opportunity to do so. There are many characteristics proven to increase the value of your business in the eyes of acquirers. Choose some and get going.
• There are a lot of similarities in the most common transitions. No matter which one you choose, preparation is very similar as well. Begin your preparation now so you'll be ready no matter what path you choose.
• The Master Planning Process is the tool that puts legs to your plans. You know more than enough to choose the type of help you want based on how much you want to do and how quickly you want to do it.

You can do this!

Watch this summary of the entire course.

Key Takeaways

In this course, we've addressed the most common questions we hear from our business owner clients:

• How much is my business worth? The value of your business is in the eyes of the acquirer. Within the Market Value formula, this applies to both the earnings and multiple factors.
• How much money will I need? A detailed cash-flow analysis incorporates what you want to do, how long you expect to live, and what you want to leave. If the current market value of your business doesn't meet your needs, your business can fill the gap!
• Where and how do I start? Start Now! Be sure to protect what you already have and set up Key Performance Indicators to guide your path to best-in-class.
• What if I need more money from my business? Be intentional! Consider the proven ways to increase its value. Prioritize the options and begin every day with the intention to increase value.
• How does the transition process work? There are several steps that overlap all the transition options. The best outcomes for you, your business, and its future owners rely on your groundwork. Prepare wisely!
• What else do I need to know? You can do this! The Master Planning Process keeps your goals in front of you. It illustrates the steps you need to get there and reduces the big picture into short, actionable plans. And, you can get as much help as you want.

Next Steps

• Complete the assignment in your workbook for lesson 4.
• Congratulations on completing the learning portion of this Roundtable. That is phenomenal and a strong sign of your commitment to your business, your future, and your legacy!!! Before your investment loses its momentum, carefully consider when and how you want to get started by implementing what you have learned.
• Meet with the advisor/expert who recommended this series and/or your roundtable. Please bring your questions and ideas for discussion.
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