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
- The relationships need to be passed onto capable leaders that will stay with the company
- 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
- Delegating to the appropriate people will often help the business scale and survive better
- Developing 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 staff are only there because the owner is there
- Loyalty is a double edged sword. While great bosses are hard to leave, the Vision, Mission, Values, and Goals (VMVG) are what most are there for. They are just embodied in the leader. Get them out of your heart and operationalized
- VMVG are easier stated as Where we're going, Who we serve and How, What do we stand for, and What is the next thing we must do?
- Step 02 is strong for the Mission. Step 04 is good for the Vision. Step 05 is all about Values and operationalizing all the VMVG for the team to embrace
- 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.