Business Exit Strategies – Reasons for selling
Research into the business exit strategies of entrepreneurs has shown that there are three primary personal reasons for selling their businesses.
Change of lifestyle
This is perhaps the most common reasons for business owners developing their business exit strategies for selling their businesses.
Running a business requires considerable levels of commitment and responsibility. After living with this weight for many years, business owners often reach the point where they decide they really want to do something different with their lives. Whether you are approaching retirement or looking for a new challenge, a change of lifestyle maybe at the front of your thoughts.
There are other reasons why you decide that you need a change in lifestyle. These can include health concerns, changing retirement strategies, financial concerns or purely a need to change. You can be very certain about the change that you want or only aware that you want to make a change.
There are some that are suddenly struck that they just do not want to be doing what they are doing for the foreseeable future. At that point, they decided to explore changing their circumstances and begin looking at the available business exit strategies.
At Business Exit Strategies, we have come across business owners who have simply done enough, or perhaps have had enough, and feel that they have got to the end of this particular stage in their lives.
However, you have reached this stage, it is important to understand that these feelings are common and also to know that there are genuine opportunities to sell all or part of a business.
Entrepreneur’s versus managers
Owners of private businesses are often entrepreneurs, who by their nature are creative, full of ideas and energetic. For many, starting a business was the most natural thing in the world! However, as their business has develops, some owners find themselves increasingly stifled by managerial responsibilities such as employment legislation, personnel issues, health and safety matters, bank managers, etc. For many it feels as if all the fun has gone out of the business. Investigating various business exit strategies becomes increasingly attractive as a logical and sensible way to exit and start a new chapter in their life.
These owners loved going to work, creating new ideas and seeing them germinate and grow to fruition. As a business develops the feel of the business can be different as you have to deal with staff issues and government red tape. It is probably not why you set up the business in the first place. Unsurprisingly once the fun has gone out of running the business, it is very easy to fall out of love with your creation.
If you have been running your businesses for a number of years you may have found yourself in a managerial role which never allows you to be involved in the areas of the business which you love. This may not happen overnight, but could have evolved over a prolonged period.
Time
If a change in lifestyle is a common issue, so is its partner lack of time. Perhaps as a business owner, you have woken up to the lack of time you have to do the things you enjoy. One author puts it this way, entrepreneurs have the luxury of working half days, and get to choose which 12 hours it is!
Many business owners find their business has become all-consuming and live with their business virtually 24 hours a day seven days a week. You probably things that you want to do, but rarely have the time to get them done.
You be one of the numerous business owners who have a very high standard of living but an appalling quality of life. There are many who reach retirement and realise that they have had everything but no time to do anything in.
What should you do now?
You can call me NOW to discuss how your business exit strategies can be developed to satisfy your retirement or lifestyle requirements or complete your details above and I will share some insights by sending you my report “Boost your business’s value by 50%” or email: brian.russell@profitabilitygroup.co.uk.
Brian Russell FCA
Strategic Planning Partner
Tel: 01661 872004
Brian Russell FCA is a Chartered Accountant specialising in business development particularly within small and family run businesses to maximise the returns available when exiting their business or handing it on to the next generation.