We hear it all the time from our business owner clients and friends when we ask about how much longer they plan to be involved in the business:
“I’ve got a five-year plan.”
And honestly, we cringe when we hear that. Because in our experience, the “five-year plan” rhetoric often means:
“I know I need to do something, but five years is so far out that I never actually have to get started.”
And every year after that, it’s still a five-year plan. The planning and exiting gets pushed out indefinitely. This is how business owners lose the ability to call the shots about when, why, and how they finally exit the business and start their next chapter.
Is this you?
Remember: All business owners exit their business at some point – either on their own terms or someone else’s.
At Heritage Financial, we help business owners exit on their own terms…when and how they want.
But exiting on your own terms requires knowing WHEN YOU CAN exit the business comfortably. And that means having answers to these questions:
We recently worked with a business owner that received, unsolicited, a top-dollar offer to buy his business. He came to us for advice on next steps. As we started the process of answering the questions above, it became clear that even though the offer was strong, he wasn’t ready financially. His lifestyle was going to have to change significantly if he went through with the sale.
Our advice to him was to wait. We helped him structure a plan for extracting more cash from his business over the next several years. We showed him how increased savings over the next few years would add to his liquid assets. And we helped him identify a point in the future when he could comfortably accept a range of offers for his business and start the next chapter of his life on his own terms.
He wasn’t ready. But now he knew what it would take to get ready…
and when he would be ready.
Five-year plans easily become six and seven-year plans because the underlying planning hasn’t been done. There is no clarity on what life after the business looks like. And no idea about what is needed to feel comfortable to walk away from your life’s work and start a new chapter.
You’ll also want to review these other resources we’ve compiled for business owners:
And don’t forget to register for our upcoming webinar: Is the Window for Selling My Business Closing?
Hear Heritage Financial’s President, Sammy Azzouz, and Greg Rush of investment bank Dunn, Rush & Co. discuss the impact of the pandemic, changing tax laws, and higher potential interest rates on what has been a seller’s market for business owners. The webinar takes place on Wednesday, October 20th at 11 AM EST. Register even if you can’t make it live, and we’ll be sure to send you the replay.
Kristin Castner, CFA
At Heritage Kristin is responsible for overall marketing strategy, with a focus on communicating the firm's message to clients and prospects and creating outreach programs to engage clients, partners and prospective clients.
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