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Value Creation Blog

Business Owners - Do You Really Want To Work For Someone Else

Posted by Josh Patrick

Work_For_Someone_Else.pngI truly hope the answer to that question is a rousing no! Not that it’s a bad thing to work for others, it’s just that you’ve spent years working for yourself.

You’ve spent all of that time giving orders and now you’re considering taking orders from someone else? To me that surely sounds like a recipe for disaster.

Why did you get in business in the first place?

I want you to take a step back in time. I want you to think about what your dreams were and why you decided to get into business in the first place.

I’m going to bet that you wanted to start your own business at least partially so you could control your own destiny. You get to decide whether you want to go to work today. You get to decide how you’re going to work and what you’re going to wear.

That any many other decisions go away once you decide to work for someone else. Before you sell your business make sure you think long and hard about having to take another job if you sell.

Do you know what it takes for you to leave your business and ride off into he sunset?

I’m talking about financial security. Have you looked at the income and expenses you’ll have once you sell your business? Have you thought about how you’re going to pay for all of the items like health insurance, cars, and travel that your business used to provide for you? These are all deductible while you still own your business. They might not be when you decide to work for someone else.

Knowing the number that you need is an important exercise. One that should be done with an advisor who works with business owners and helps them successfully put together a plan to leave their business.

Does your financial planner know how to plan properly for your business?

I recently was at a seminar where someone did a presentation on planning she had done with a very successful business. She claimed she was saving the business all sorts of taxes. The problem was she was wrong. She wasn’t saving taxes. The way she structured the business sale was going to cost the buyer a great deal of money and the buyer was the business owners son.

I want you to really find out if your financial advisor knows how to deal with those who own a business. I want you to ask hard questions like how do they value your business for retirement? If they don’t give you an answer that includes what you’re going to pay for taxes and professional fees, move on and find an advisor who understands these issues.

You might even want to get our Ebook on the 4 Boxes of Financial Independence. This report will help you learn to think about the financial assets when it gets time for you to move on and leave your business.

Have you thought about what’s next in your life?

Transitioning out of your business is a really big deal. It just might be the biggest transition you face in your life.

Some people I know just breeze through the process. Unfortunately, many more have real problems with leaving their business. The difference between the two is those who breeze through the process have a significant activity or activities waiting for them after they leave.

Successful exits happen when there isn’t enough time for you to get sellers remorse. If you don’t have something that you’re really interesting in doing, the chance of you experiencing seller’s remorse is really high.

I don’t want you to get seller’s remorse. I want you to think about what’s next in your life. To help you with this you might want to use our When in Transition workbook. This workbook will help you think through what your transition from business owner to what’s next in your life. Don’t you think that would be a valuable exercise?

Here’s something you might want to think about.

Before you decide to market your business make sure your finances are in order and you know what’s going to be next in your life.

I think the best way to do this is to find a thinking partner who can help you through the process. Your thinking partner should understand how the exit process works with private business owners like you. They’ll be good listeners and know how to ask the right questions. It’s something I’ve spent years learning how to do. And, I think I’m pretty good at it.

Now it’s your turn. Why don’t you click here and let me know what you think about leaving your business.

 

 7 Steps of Leaving Your Business in Style

Topics: exit planning, succession planning, financial planning for business owners

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