What would you do if you did not have to run your business?
With the summer holidays getting into full swing, and the gentle warmth of a UK heat wave, this question may be running through many a business owner’s mind.
You may have started your business 10, 20, perhaps 30 years ago. It is quite possible that you have thought about it at some point, every day during that time. At the same time, you have built a team around you who have helped you make the business what it is today. You have great clients to work with, mostly. You enjoy it, and the day-to-day challenges keep your mind active.
Imagine for a moment, you have just sold your business. You did some careful financial planning to make sure you have more than enough for your retirement.
But you have sold it. The business is owned by someone-else. It is part of a much larger organisation. That difficult client – not your problem…
So what do you do now?
In our experience those who have not thought this through before embarking on the process of selling their business often find it that much harder to let go or even contemplate going through with the sale when negotiations get tough.
Business owners and entrepreneurs are active people. Their minds are always thinking ahead to the next big idea. They don’t slouch about. Daytime TV, perish the thought.
We thought we would suggest a few ideas:
- Spend more time on the golf course
- Take more holidays with the family
- Take on more grandparenting duties
- Sail around the world
- Run a farm in Spain
- Invest in property, or property development
- Set-up or buy another business, or help a family member to do so
- Use your experience help other business owners grow their companies and possibly exit
Some of these ideas may be appealing, the thought of some may make you decide to stay on much longer. The key is to have an idea, an end goal.
We often come across business owners who have opted, either expressly or by default, to stay on running their companies, retaining ownership well into their 70’s. The sad thing is that we often find these businesses the most difficult to sell. Little innovation has been implemented for some years, the energy has dropped, sales have often tailed off, key staff are also looking to retire, and the business remains too reliant on the owner.
On the flip side, we have seen in recent years many business owners looking to sell their businesses in their mid 50’s. The lockdowns perhaps gave many business owners pause to reflect about the future and how they wish to spend it. The result has been some well planned exits, businesses transferred when still in their prime, good valuations being achieved, and former owners of successful SME businesses ready for the next roll of the dice.
At Hornblower, we are always happy to discuss your plans for the future, looking at all the options for your exit as well as providing a free indicative valuation. Whilst our business is about selling businesses, we help you decide whether a business sale is right for you and your business before you engage us. Do get in touch to arrange a chat.
