Building Your Legacy
Consider your business is a product that has to attract the right person
However long you have owned your business, moving into the next chapter, where your business is not a part of it, is a very difficult and hard-to-navigate process.
In order for the business to be attractive to the next entrepreneur, it should be as close to a turn-key operation as possible.
We have a number of great resources and tools for you. Before we get you on your way, here are a few quick tips to improve your experience. Both your knowledge and your enjoyment.
When it comes to exiting a business, here are a few of the most common challenges.
- The customers are too reliant on the owner
- In a solo business, it is almost always this way. Having clients that are well communicated with and understand the value of the new owner, as well as helped along in building a relationship with the new owner, will create the least amount of lost clients.
- Step 02 for good customer mapping and Step 06 for mapping processes in The Entrepreneur Roadmap below
- The owner is the only one who really knows how everything works
- Again, in a solo business, this will always be the case. However, good processes and a manual on how everything is done will be the easiest to sell.
- Developing these processes in Step 06 and creating an plan to get it done in Step 04 will help immensely
- The exiting entrepreneur doesn't know what they will do without the business
- When you started the business, there was a hope for the lifestyle it would bring. After the years of working the business, what is new, what has changed? What do you want the next chapter to look like?
- Step 01 is all about discovering and implementing a life plan for the life you want
- The owner is asking for an amount far greater than what the business is worth
- This is a very sensitive one. After all the years of blood, sweat, and tears, certain offers of the value of the business can be downright insulting.
- The business must be looked at as a product. Does it deliver what is expected of it? Can it continue to deliver what is expected without the current owner?
- One way to prove that it will deliver is to keep the owner on under a performance agreement tied to the greater part of the balance of the sum offered in the sale. This - at the very least - delays the separation from the business. At worst, unforeseen circumstances causes the business to do worse and all parties are frustrated.
- Working through all the steps in The Entrepreneur Model will be a strong leap towards building a HIGH VALUE business
A free resource you may find helpful is a brief ebook with an overview of some of the tools from The Entrepreneur Roadmap.