Show Me the Money

Where?           Will you find the next owner

Was / is your vision to have your children take ownership and manage the business you founded?

If you are still at the start up phase and have children who may some day be candidates, make certain that you establish appropriate balance between business and family. Far too many founders started down the ownership road so their children would have the benefit of having a successful business of their own, only to find out that they sacrificed so much of their own time to the business that those children want nothing to do with it. Then get the children involved in small ways early on; don’t make it slave labor but enjoyable time with you. Gradually expose them to all aspects of the operation and let their natural skills lead them into areas of strength. Don’t commit anything too early; this is a major issue that takes considerable thought. And don’t force them into a commitment that they may make only because you are THE PARENT.

Transferring knowledge of the operational, financial and marketing aspects of the business is no assurance of success. Your offspring must sense your passion for the business and catch that if they are going to get from it what you wanted for them.

Are you planning on selling to a third party to fund your retirement plans? (See previous post) The economic reality of the past 5 years is this – the younger people who might have been buyers have not been able to accumulate the funds necessary to do that. The next 5 to 10 years are going to be a buyer’s market. Those businesses that do get sold will be the ones that have the best package of promised success. Is your business one of those?

Jim Peters
Peterspective
(317) 372-2304

The instant a private thought is communicated to another in any form, compromises begin to be made in the confidentiality, integrity and availability of the information shared. Yet the appropriate sharing of information is critical to the operation and success of every organization. The purpose of our relationship will be for me to assist with the safeguarding of the information critical to the continuation of your business. My role in our relationship will be similar to that of the sailor in the crow’s nest. I am not there to steer the ship nor am I there to read the compass or do soundings. I am there to keep a watch out for storms or pirates on the horizon and to keep an eye on the distant shore.

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