Planning Your Business Exit Strategy
If you're a business owner looking toward the future and considering how to navigate the complexities of selling your business, this episode will provide invaluable insights. I joined host Tyler Martin of the "Think Business with Tyler" podcast where we chat about client relationships, and the nuances of selling a business. You'll learn about the significance of maintaining accurate books, staying organized, and ensuring the well-being of your employees and clients during times of transition.
Or Listen Here:
Website: https://thinktyler.com/podcast_episode/your-business-exit-steve-juetten/
Spotify: https://open.spotify.com/show/1XfzoiWgiizt7TaZ74YXuB
Apple: https://podcasts.apple.com/us/podcast/think-business-with-tyler/id1559678562
Taste of What Is Covered:
How to prepare for selling a business so that you can create a smooth transition
The process of selling a business including how to evaluate your business and finding potential buyers
The SOS model for urgent business sales
The 5 reasons business sales fail and what to do about it
How to sell your business so that every stakeholder wins on the way out
Key Moments:
(00:24:18) Positioning for company exit
(00:30:42) Reasons businesses don't sell
(00:34:57) Evaluating business value
(00:35:40) Service options for business exit
(00:36:29) The SOS model for urgent business sales
(00:39:09) Finding potential buyers
(00:41:22) Winning on the way out
(00:46:47) Challenges of running and selling a business
The Emotional Journey
My business wasn't just a collection of assets; it was my life's work, my creation. When contemplating selling, I experienced a wave of conflicting emotions – from excitement about the potential outcome to anxiety over the uncertainty of the future. This emotional turbulence is something many entrepreneurs can relate to but often don't openly discuss.
The Importance of Support
One crucial aspect that helped me weather this emotional storm (of selling a business) was having a support system in place. Whether it is a wife, business partner, or trusted colleagues, having someone to confide in and share the burden with is a blessing. The adage "it's lonely at the top" holds true, especially during major decisions like selling a business. Surrounding yourself with a supportive network can make all the difference.
Planning Early
While it's tempting to delay thinking about an exit strategy, especially in the early stages of building a business, planning ahead is crucial. Having a clear vision of the end goal from the outset can inform strategic decisions along the way and ensure that the business is built with an eventual sale in mind.
Financial Preparedness
Another critical aspect that often gets overlooked is financial preparedness. It’s crucial to maintain accurate financial records and invest in proper bookkeeping from the outset. A well-documented financial history not only instills confidence in prospective buyers but also streamlines the due diligence process, making the transition smoother for all parties involved.
Fit Over Maximizing Value
When selling a business I like prioritizing cultural fit over maximizing value. While many entrepreneurs are solely focused on securing the highest possible sale price, I place equal importance on finding a buyer whose values aligned with those of his company. I want my clients to ‘win on the way out’ so that all stakeholders benefit from the transaction. That means the buyer, seller, vendors, employees and clients.
