“According to a study by the Centre for Small Enterprises at Massey University, during the next 10 years 64% of business owners intend to exit their businesses. For the North Shore, where I live, that means about 16,000 businesses may come up for sale during the next 10 years. That’s 130 a month, every month, summer, winter, good times and bad for a decade!
If you are thinking about selling your business during that time, do you think you will achieve the sale price you need to fund your ideal future in such a potentially crowded marketplace? Of those business owners who intend to exit their business in the next 10 years, 70% intend the sale to fund their retirement, but 87% have no formal plan on how they will do this.
The message of planning a successful exit from business has not yet been taken to heart by the majority of business owners and this may result in a lot of unfulfilled dreams of a long and happy retirement. The general attitude of: “I’ll get round to it when I have to,” is all too prevalent and the point of early planning to maximise value at exit is lost on many.
To a lot of people, exit planning is viewed in a similar way as painting a house before it is put on the market i.e. something done close to the point of sale. Yet good exit planning should start much earlier. The benefits will be a wider range of exit options and a bigger pay cheque for the owner on handover day.”
This is the beginning of an article I had published in the Enterprise magazine a while back, under my other brand; Icon Business Solutions. The principals are the same for trades business owners too. Download the rest of this article by clicking HERE. Give it some serious thought, then give me a call to discuss any concerns you have and how I may be able to help put a plan together with you.
The Trades Coach
Find me at: www.tradescoach.co.nz