What to know before thinking about an exit

Last week, a business owner asked me, “What do you wish your clients knew before you started working with them?”

So I said, “What does it cost to live your lifestyle?”

You might be surprised that that’s step one, but it is. 

A lot of people just don’t know what their lifestyle costs to live. Right now, everything‘s getting done and paid for, so it’s easy to not think about.

But if you don’t know what your lifestyle costs now, how will you know how much the business needs to sell for to maintain or grow that lifestyle?

Which gets to the second thing I wish they knew (or thought about), which is, “What do you want to do with your future?”

To improve the likelihood of hitting the number you need for your exit, you’ll want to have thought about how you want to spend your time afterwards. 

What will you do with the money? 

Will it be enough to live off of and support your family, your goals, your legacy?

And what are the experiences you’ve been dreaming of that you’ll want to achieve once you have more freedom in your finances and your schedule?

I feel like business owners can get so wrapped up in doing what they do for their teams, their employees, their families, that they often have no clue what they’d do with themselves once they don’t run a business anymore.

I think if you polled every business owner who’d ever thought about an exit, I suspect you’d find that the majority are people who are not feeling great about the business, currently.

Maybe they had a rough year, or maybe they’re just burned out after 20 or 30 years in the business. Which can make exiting more difficult, because the business might not be in the best state for a buyer.

But if you start the process early, and start thinking about what your lifestyle costs and what you want to do after you exit from your business, you’ll be in a better position to make it happen.

Because it might take a few years to make the changes that will benefit you and your business, so you’ll want to have some gas left in the tank to get there.

Remember, we’re always open to conversations about exiting your business and what you want to do in your future, even if you’re not quite ready to take the leap yet.

And don’t need to have all of the answers before we talk, but please spend a minute or two thinking about these questions first:

• What does your current lifestyle cost to maintain?
• How do you want to spend your time after you exit your business?

Get in touch, and let’s talk about the life you want to lead after your exit. 

-Jason

Book a JobWalk with me and we can start the conversation.

Interested in other Rungs? Check them out HERE!

102 WEST HIGH STREET, SUITE 200

GLASSBORO, NJ 08028

HFM Investment Advisors, LLC is a registered investment adviser. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. All investments involve risk and are not guaranteed. Information expressed does not take into account your specific situation or objectives and is not intended as a recommendation appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment advisor to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.