Ask These 5 Questions Before You Exit Your Business
“Mike, how do I exit and/or transition out of my business?”
I get that question often, and the answer is actually straightforward:
Start planning now.
If your goal is to transition within the next five years, we need to start moving fast. If your goal is longer, we have more options to explore.
The 5 Questions You Must Ask
Here are the five main items to consider when transitioning from your business.
1. What Do You Want to Do?
Do you want to transition the business to your heirs, employees, or management? Do you want to sell the business?
There are a lot of variables and options here, but having a basic understanding of what you want to do will be helpful.
2. Are You Ready Financially?
Do you have an idea of what you will require financially to accomplish your goals until you die?
If you don’t already have a wealth advisor, we need to find you a good one.
3. Are You Ready Mentally?
Over time, some business owners start to treat their business like a member of the family rather than an investment.
Will you be able to separate mentally from the business?
4. Are You Willing to Change?
If you are looking to get the highest value, you will potentially need to change how you are currently doing business. For instance, you’ll need to ensure that your leadership team can run the business without you.
If all decisions currently go through you, that needs to change. Are you willing to allow that?
5. Do You Have the Right Team Around You?
During a transition, you still need to run the business. You can’t afford to be distracted by the busyness of a transaction.
Do you have someone (like myself) to run point on coordinating your transition team? Do you have a CPA? A lawyer? A wealth advisor?
Ideally, all those individuals have done deals previously, so they know exactly how to help you.
Are You Ready to Exit Your Business?
I’m here to walk you through all of the questions above to help you achieve the best solution to transition out of your business.
Think you may be ready to exit your business?