Kind of dramatic, but rocket scientists must do everything right, in advance, to ensure a successful launch. Business owners, like the rocket scientists, must prepare, in advance, for controlled growth and/or planned transitions in ownership/leadership. Without advanced preparation, the business owner, like the rocket scientists, becomes “reactionary” with few options and very likely disastrous results.
And that does not take into consideration “unplanned” life events (medical/death) that are out of your control.
Business owners are so often focused on sales and operations that strategic planning and analysis gets set aside. The plan to get the equity out of the business at retirement, and monitoring just how much that needs to be, gets put off.
As a business owner…
1. Do you know how much you need for retirement?
2. How much of that is from the equity in your business?
3. Does your business story (profitability, balance sheet, human capital, customer/product base, organization structure) justify your expected business transition proceeds?
Contact me for a copy of the EBITDA modeler I have created that you can use to see where you stand. FocusCFO offers a no-fee assessment to discuss how we can help you maximize your company’s “Multiplier” and EBITDA…and be prepared for when life happens.
Mitch Willis is Area President for FocusCFO based in Erie, PA.
To reach him:
m.willis@focuscfo.com
(216) 298-4500
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