Hi, Michele Miller here again with the second in our three-part “Quick Take Video,” addressing a recent question from Greg Taylor. Greg is 54 years old and owns a profitable power sports business that’s taken a lot out of him. In Episode 1, we talked about the difference between a simple need for vacation vs. actual passion for a business and knowing when it’s the right time to sell.
Today, we’re going to look at three practical questions that you should consider if you’re thinking about making a major change in your career or business life.
How Many People Depend On You?
If you’re single or an “empty nester,” making the decision to pack up the business and move on to a new challenge is easier than if you’re still caring for children, parents, or anyone else in your life. Looking at future needs for which you will likely be responsible (such as college tuition) is going to have a significant impact on how you answer Question Two, which is…
What Is Your Staying Power?
You need to spend time figuring out a financial number which is essentially your “staying power” – the amount of money you’ll need each month to meet basic obligations. Of course, the fewer people depending on you, the lower your number can be. And the more you have saved in advance, the easier it will also be. Coming up with your staying power number can take awhile but can also be an eye-opening exercise. It’s funny how once you see how little you could survive on, you sleep much better at night.
How Will You Exit?
There is no right answer here because situations are subjective. But make sure you do all your homework to ensure that your exit is planned well in advance and provides the most “walking out the door” money possible. For some, it will be selling the business outright – but make sure you’re exploring all options to sell at the highest price. In this day of the Internet, don’t limit yourself to posting your business locally or regionally. There has to be someone in a distant state who’s looking for the kind of opportunity you’re offering.
These three practical questions should help get you on the track to exploring the future in a logical, realistic way. It may take some time, but it’s worth it.
Stay tuned for Episode 3 of this “Quick Take Video” series. I’m Michele Miller – if you have a question for the WonderBranding team that you’d like to have help with, send it our way at ask@WonderBranding.com.