Common exit problems
financial checklist for exiting your business (5 tips to ensure paying yourself more)
How Can My Business Run Without Me?
The value of your business is directly proportionate to how well the business runs despite your absence. This can make planning for retirement tricky.
Business owners that sell their business to an outside company are usually tethered to the sale of their business from one to five years. How long you plan on exiting your business after its sale is directly related to how independent the business runs when you’re not there. The greater the reliance, the longer the transition period. Typically, when the sale of the business is an outside buyer, this period is not enjoyable, especially for the outgoing business owner.
Forget about selling your business for a moment; how does a business owner go away on vacation without being tethered to the office? Being the “go-to-person” for your business can prevent you from living your dream, empowering your people and eventually growing your company to run without you beyond a couple of weeks at a time. By being able to transform your role from running day-to-day operations into that of being the ultimate visionary for the business, would not only allow you to grow your business’ value but also not have the business completely rely upon you being there.
Here are some suggestions to allow you to relinquish control of the day-to-day activities without losing control of your company. These will help you a lot when you’re planning for retirement.
Resist Temptation to Micro-Manage:
By allowing your people to make the small decisions, they will grow in confidence and in ability to make larger and more important decisions over time. Discourage people’s temptation to ask you for the answer and empower them to think on their own.
Allow Mistakes to be Made:
Telling people how to do something will never allow them to grow as managers. Not only allow them to make decisions but allow them to learn from their mistakes as well.
Make People Accountable for your Responsibilities:
If you never assign responsibility for your various roles, you will never be able to expect people to fill in for you in your absence. Assigning clear and concise responsibilities allows new mental muscles to grow.
Plan a Mini Vacation:
By going on holiday and having no access to company communication, makes people work together and find a solution. Empowering other people to call the shots also allows you to relax when away from the office. Leave the laptop and the cell phone at home. You may reach for that phantom “phone” limb for the first three or four days away but you will truly learn how to shut down over time.
By starting this process early in the growth of your business, you will ultimately make it easier to go on longer vacations and eventually hand off the business to be run by others.