When it comes to retiring as a business owner, there is one statistic that may shock you. According to the Exit Planning Institute (EPI), 80% of businesses that gross under fifty million dollars in revenue will never sell. While this is an alarming statistic. It doesn’t have to be a reality for your business. Today I’m going to tell you why your business will never sell and what you can do about it!
So of the six million total businesses in the U.S. right now, 5.6 million of them are small businesses. Couple that with the statistic above and you may think things aren’t looking too bright for your retirement from your business as an owner. While there are a plethora of reasons why a business doesn’t sell, I’m going to give you three that could boost your chances of exiting in style when the time is right.
So, what is the solution to this conundrum? An exit plan. It requires you to incorporate a strategy that allows you to maximizes the business. You also need to make your business transferable. Structure the business to accommodate the new buyer’s ideologies, systems, methodology and thought processes. There you have it, at least three challenges to overcome if you ever plan to sell your business. Contact me if you want to work on a specific exit plan for your situation.
In the meantime, visit our series on Building a Sellable Business growth series of articles designed to walk you through all aspects of planning to sell your business.