We were delighted to host a Breakfast event at Crowther to give some food for thought to directors/business owners alike looking to plan their future.   They all had something in common, they had a vision to exit their business within maybe 10, 5 or even 2 years. A huge thank you to Rachel Stirling and Andy Weavill who offered their expertise in this area. We spoke in depth to explore how to go about the transition, by way of using four drivers.

We spent a thought-provoking few hours carrying out open discussions about how to begin the process of letting go and formulating a plan to do this.

When we embark on the journey in business, it is hard to comprehend the tremendous amount of time, effort and energy it takes to nurture a successful business.  We take a daily ride on a rollercoaster of emotions in order to nurture and build the business, make many sacrifices; we speculate, deliberate, plan, and implement; we wear many hats and juggle umpteen plates.  Inevitably for most people the time eventually comes where it would be wise to start planning an end. Whilst there are many reasons and circumstances why business owners begin to think about an exit route, there are four ‘D’s’ which are common factors which generally initiate that wish to divorce themselves from their business.   These are Disease, Demands, Detachment and Discontent.  It could take just one of these factors or indeed a number of these factors to start the ball rolling.

The mistake many make is to act on impulse.  They reach crisis point, throw their arms in the air and impulsively react by trying to find an immediate exit route, by whatever means possible at the time. What a shame….. Did they maximise the business worth potential? Probably not….. If this is to be avoided, owners should have a clear vision, with plans in place enabling them to create the best exit route several years prior to execution.

Have you got a plan in place?

Have you got a business that is attractive to buyers?

Business owners wish or need to let go for a number of reasons.  It was interesting that the business owners attending our workshop all had the same reason in common and that was fundamentally to provide them with the luxury of time and more freedom.  So how do you make that mental, emotional and financial transition that will allow you to achieve this goal?

We spent time exploring:

 

 

 

• Emotional drivers
• The future vision
• The long-term plan
• Timescales
• The Why’s
• Emotional and financial readiness
• Exiting without regrets
• Maximum return
• Successful transition
• Involvement of staff
• Involvement of external advisors

One can guarantee however you choose to dispose of your business, no matter how much you think of it as being a cold-hearted financial transaction, there will be a degree of emotional attachment which you will do well to prepare for.  Like waving your child off when leaving home to pursue their own dreams and goals. If you can step away with pride then you’ve done a good job.  The same being if you can leave your successors to drive the business forward without the need for you to be at the helm, whilst at the same time knowing you have achieved your maximum return on the transaction then that will no doubt go towards helping your personal transition into the next chapter of your life.

To assess your personal readiness to exit your business here is a free link https://prescore.com

One comment from an attendee at the seminar was.…..

‘I found the seminar very informative and valuable. I have spoken to Andy earlier today with a view to arranging a meeting and formulating an exit strategy.’

And another comment was…….

‘I found the morning incredibly useful and for me it was actually very assuring in making me realise that I am actually further down the line in the whole process than I thought I was and actually made me quite pleased that we appear to have been heading in the right direction regarding planning the next 5 or so years.’

If you would like to discuss the above or how to attend a workshop in the future please feel free to contact michelle@crowther.accountants for further details.