If you do not change direction, you may end up where you are heading.
– Lao Tzu
Do not let what you cannot do interfere with what you can do.
– John Wooden
Overcoming changing obstacles is critical to success in 2021. In this challenging time for business, owners can absolutely come out on top after weathering the coming unknowns, but doing so requires effort. And effort means work — a new type of work.
We feel the change in the air, yet too many owners remain in their default mode, precariously positioned without a contingency plan. When unexpected obstacles are, frankly, inevitable, “I’ll figure it out” is simply not a plan. What happens if you lose a major player? What if a lender pulls out? And what about the notorious “5 Ds”?
At Eagle Corporate Advisors, we prepare owners and businesses for what lies ahead, applying our knowledge and experience. Reach out anytime for a complimentary consultation. We’re here for you.
Fundamentals: Planning for Retirement Part II
Preparedness and Business Transferability
You will exit your business eventually — it’s one of the inevitabilities of life. Too many business owners give little thought to when and how they will exit their business, eventually allowing stressful circumstances to dictate the timing of a desired sale. This leads to consequences, and the many negative feelings associated with being ill-prepared. And it leaves money on the table.
Have you thought about a future
where you are not working in your business?
Do you have written plans for an exit?
“I’ll figure it out” is not a plan.
Your level of preparedness for your exit is a variable drastically affecting a myriad of outcomes — not just for you and your family, but also for your employees and other stakeholders.
According to data gathered from an owner dependence survey of 648 U.S. business owners, the average small business is more than 50% dependent on the active involvement of the owner. Your business becomes increasingly desirable and transferable as its day-to-day dependency on you decreases.
How Does a Growth Plan Factor into an Exit?
A growth plan is an essential part of any exit plan. It’s a comprehensive document touching on all areas of the business, addressing the next owner’s concerns while highlighting opportunities for future growth. An architectural design for the next level that the business can reach, a growth plan paints a picture of a future for the business and provides a blueprint for expansion.
A great majority of owners require considerable assistance strategizing a bulletproof exit plan.
Exit Strategy Process Overview
Complete a business valuation assessment
Understand the value gap between your existing position and your future needs/desires
Measure the increase in business value needed to meet your personal goals
Examine the obstacles that could prevent a future transition
Prepare a growth plan
Working with Eagle Corporate Advisors
First and foremost, we are here to serve. Our goal is to provide the true comfort and reassurance that comes with knowing you have an effective plan in place that is based on accurate and up-to- date information. Your business’ level of preparedness for the future has undeniable effects on your day-to-day well-being. Our focus goes beyond numbers by acknowledging the fact there is far more to you and your business. Owners say that working with Eagle allows them to sleep better at night, a fact that we are very proud of.
Many owners are at first intimidated by the thought of having someone assess their business, but that quickly changes when they have the facts about how it will work for them. And it’s encouraging to see how much easier it is to develop future valuation assessments once the first one is insightfully completed.
Exit planning requires effort on your part as a business owner, yet what you will learn along the way is invaluable. As your mentor, Eagle Corporate Advisors aims to minimize the stress of this important undertaking, ensuring that once we start, it will be a process completed in a way that is an ideal fit, unique for you and your enterprise.
Often, owners need sound advice and encouragement, and sometimes they need a kick in the pants — either way, this is what we do, and it’s how we serve.
Professionals such as Eagle Corporate Advisors are available to assist business owners with the exit from their privately-held business. We are qualified to effectively and successfully prepare you and your business for what is likely to be the largest financial and emotional transition of your life.
For another angle on the topic, check out our “6 A’s” road map to performing higher.
“We become what we want to be
by consistently being what we want to become each day.”
– Richard G. Scott
This has been a favorite quote of mine for years. Why wait for the future to be the person or company of your dreams? We will not become who we want to become without stepping into those shoes. We cannot allow procrastination or peer pressure to delay our progression. This applies to business as well. A business needs to begin functioning in the desired manner today, regardless of circumstance, if they ever want to function in that manner. – Chuck Mohler
Entrepreneurs, when starting out, wear many hats and perform many tasks. However, for the company to grow and evolve over time, the owners will need to shift from performing hands-on work to process-driven oversight work. But how do they break out of their rut to make that leap?
These changes may require the expert, professional help of an objective outside specialist. This is one of the reasons Eagle Corporate Advisors was founded — to provide challenged business owners with the best information, informed by continued learning and decades of experience. We show owners a new way of doing things, putting them on the right track, no matter their goals.