By: John Hotson,
Business Transition Alliance Co-Founder
With the unprecedented number of business owners who are poised to transition out of their business over the next few years, there has come a surge of opinions about how they should be addressing this imposing task.
I’ll admit that most of what I hear is sound, well-intended advice, and I’m all for that. But there’s one thing I haven’t heard much talked about. Rather than treating this as a stress-filled march to some distant exit, shouldn’t this transition be viewed as an exciting opportunity for owners to capitalize on a lifetime of sweat and tears by taking the business to a whole new level? Everything that owners, workers and shareholders have worked so hard for comes down to how this ride ends.
Most owners will tell you, that while running your own business for 20 or 30 years is a hectic life, its not a sprint, it’s a marathon. You’re constantly checking your pace and managing your intake of liquids so that there is enough gas in the tank to put on a strong push at the end. In a marathon it’s all about the finish.
When you think about it, a business that has endured and prospered for 25-plus years should be in the best place it ever has been, when it comes to knowing exactly what must be done in order to sell for the highest price. There’s most likely a good understanding of the competitive landscape and the advantage the business has; an awareness of the various opportunities that the current leadership team can exploit; and there are more than likely some strong opinions on what it would take to get the business to the next level.
It should come as no surprise that this is what potential buyers are looking for – a business investment that is building momentum – not flagging at the finish. With the end in sight, now is the time for owners to extract that extra bit of effort to finish strong.
The business owners I work with tend to have one thing in common. They share a strong sense of pride in what they have built over the years. Their business has been their life and they want their life to be recognized for the value that it represents. In discussing their exit we very quickly get to the topic of how to maximize that value.Our conversations focus on those things that need to be done in the last leg of the race. The more intangible aspects of value such as; why they are different from their competitors; how the engagement of their employees has steadily improved their sales; how effectively their brand reflects the future opportunities for the business.
These are the things that will distinguish them when they cross the finish line.
About John Hotson:
John is a seasoned marketing and communications professional and running addict. He has worked as both a business owner and advisor to owners who are committed to improving the value of their business. John is a principal of Clearwater Corporate Communications and a co-founder of The Business Transition Alliance.
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