Your ExitMap Blog gathers contributions from top exit planning professionals across the country that are indexed into four categories. They include select strategies for planning your exit, ideas for building your company’s value, transfer options you can choose from, or preparing to enjoy your post-exit lifestyle. This page shows the most recent posts from Your ExitMap Blog. If you are seeking a qualified exit planning professional, you can view a map of specialists here.
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Most Recent Your ExitMap Blog Articles
Most Recent Blog Articles
The Brass RingA long, long time ago (I’ve actually ridden only one such in my lifetime) Carousels had a spring-loaded sleeve of brass rings protruding near the innermost (and least popular) track of horses. A bigger kid could lean out and yank a ring from the sleeve with considerable effort, and be rewarded with a free ride. Today, of course, we can’t even read the description of such an ill-conceived device without cringing at the thoughts of fallen children, their bodies horrifically mangled in the giant gears of the turntable, and the litigation and public outrage that would follow. Times change. “Reaching for the brass ring” has become a ... Read moreThe Pig in the PythonThe title of this section refers to a well-known biological phenomenon. The python family of snakes have hinged jaws that allow them to swallow animals much larger than their heads. These animals are gradually consumed as they pass through the snake’s digestive system. If the prey is very large, you can plainly see the shape of the animal as it moves through the snake. It is just as easy to identify the progress of the Baby Boom generation through the American population. Whatever stage of life the Boomers were experiencing, the country was experiencing. And we all experienced it together. (see my timeline at The ... Read moreThe Approaching Tidal WaveA year ago this month, I began speaking to business owner groups about “Beating the Boomer Bust.” Since then I’ve delivered the presentation over 20 times, both locally and to national groups, and the requests for it are increasing. It’s the product of a year of research, and of fifteen years helping business owners prepare to leave their companies. I’m convinced, actually I am certain, that small business owners in America are ignoring a tidal wave of change that, just like a real tidal wave, will leave a few small businesses untouched while wiping many others from the face of the planet. Am I being dramatic? Absolutely. Am ... Read moreHunting vs. FarmingAt the family gathering, you are being introduced to a distant cousin you haven’t seen since childhood. The introduction usually includes your status as a business owner. “Do you remember little Cousin Bobby? He owns his own company now.” Or you hear it as you pass a conversation; “There goes Rebecca. You know, she has her own business.” You know what they are thinking. It may be the somewhat awed tone of being in the presence of success, or a “Who would believe it?” skepticism. When you are a business owner among non-owners, the undercurrent of envy and admiration comes from certain commonly held beliefs ... Read moreThe (pen)Ultimate HireEvery sane business owner will acknowledge that there is a point at which his or her own skills are no longer sufficient to grow the business beyond its current level. The revenue point where that happens differs by industry, but it frequently begins at around 20 employees. At that point, an owner becomes swamped by the conflicting needs of managing the existing operation, and having enough time to perform the tasks that made the business grow in the first place. The owner realizes that further growth requires the addition of a key employee; one who can assume some of the owner’s duties so that he or she can focus on ... Read moreAnother Lost Generation?I had the opportunity to present “Beating the Boomer Bust” twice this week, one of which was recorded for a Texas Public Radio show this weekend. For those who aren’t familiar with the piece, it discusses the massive changes that are unfolding as Boomers retire from their businesses. As usual, members of the audience said afterwards “I knew all those things, but I never thought through the implications before.” A quick recap before I get into today’s topic. “Beating the Boomer Bust” is a look at the perfect storm facing retiring owners who plan to sell their businesses. That largest small-business-owning group in history will ... Read moreThree Circles of Family BusinessWhat is a “Family Business?” A large percentage of small companies have some family involved. For most, it is simple a case of providing employment to family members. If the founder of the company is also the principle revenue generator, it may be a spouse (most often the wife) who keeps the books and runs the office. Employment of children who can’t (or won’t) find another job is common, and more so in the current economy. In most instances it is just a matter of income transfer with some value attached. The owner could keep handing over money for the child’s living expenses, but he or ... Read moreLifestyle or Legacy - Part 4Last week a client told me “You are wrong. I have a lifestyle business that is ALSO a legacy business.” Sorry, but that doesn’t fly. He has built a good company, and continues to improve it. Be he is not driving to make it into something that carries on beyond him. His objective is to (eventually) make it large enough to be acquired, and for enough money to live in luxury for the rest of his life. That is a lifestyle business. It’s only purpose is to fund the financial aspirations of the owner. There is no larger purpose, no overarching vision of something beyond his ... Read moreLifestyle or Legacy - Part 3Let’s turn to the Legacy Builders.They are the business owners who have achieved Lifestyle status (as defined in the last posting) but continue to work hard to build their businesses. Their objective is a company that does far more than merely provide a comfortable lifestyle and assure retirement. A little bit of elimination to start, as we did with the Lifestyle owners. Just as we said a Lifestyle Business was neither a pumped-up hobby nor merely an adjunct to an alternative lifestyle, the Legacy owner isn’t a couple of things that people might normally assume. Let’s set a baseline. The typical Legacy Builder runs a business ... Read moreLifestyle vs. Legacy - Part 2Let’s define a lifestyle business. For our purposes, I’ll start with what it isn’t. It’s not the small retail store being run by someone who doesn’t need the money. A few years ago I was on a judging panel for a business award. One of the finalists told her story of how she struggled and labored to build her company. I was getting pretty impressed, until she mentioned that she hadn’t turned a profit until her 13th year in business. Fortunately, she said, her husband was a prominent surgeon and could afford to absorb her losses indefinitely. That’s not a business, it’s a hobby. And it’s ... Read more |
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