Tips from the Top - August 2014
Do You Have a Plan to Reach the Next Level?
As part of following the TAB Strategic Business Leadership (SBL) process to develop our Personal Vision, all TAB Business Owners – regardless of their age – have looked at creating Succession and Exit Strategies…Read more
Selling to an Employee
While this may seem obvious, if you are considering selling your business to one of your employees it is imperative that you share everything with the employee before they decide if they want to take over your business…Read more
Exit Strategy Planning
Many entrepreneurs have much of their net worth tied up in their companies. The trick is turning that stock into cash when it’s time to retire. But the BIG question is "when to retire and how?"
Business owners begin thinking about Exit Planning when they start feeling that they want to do something besides go to work every day. They may prefer to be doing something else, or they simply no longer get the same kick out of doing what they do – the "fire in the belly" is not burning as it once did…
The For Sale Mantra
You should always run your business as if it is for sale. It results in a tighter run business. We have found that in good times, when the money is flowing, we tend to be less cautious about what we are spending money on. When things get tough and we tighten up our spending, we realize how loose we have been. Thus, our goal is to always look at the business as if it is for sale, so that the profitability is greater and the value of the company is greater.
When beginning the process of developing an exit strategy, get a business valuation early. This will help you determine who should be on your exit team and help develop the dashboard to prepare for the sale.
Developing Owner Mentality
As my son develops in his role as my successor in the company, I notice that his thought process is becoming more layered. He sees problems, but instead of just fixing them, he’s asking more questions, such as "Why is this happening?" "What is the longer term impact of my solution?" and "What system has to be fixed so that this can’t happen again?" It’s this type of thinking that will make him a great business owner.