MAYBE IT'S TIME FOR A NEW PERSPECTIVE
Over the years, you've poured your blood, sweat, and tears into building a successful business. You made it through the scars, scrapes, and bruises of the past 24 months, and your baby is back on track. Today, you may be preoccupied with labor shortages, inventory availability, inflation, and even the fear of a recession. For most, knowing what you know, you would still make the business ownership decision all over again if given a choice.
Between the demands of the day, you occasionally think about why you are making today's sacrifices. But, if you are like most of us, you will file those thoughts away in your when I get older folder (you probably put lipstick on it and called it a "10-year list").
NEW PERSPECTIVE PART 1 – "ENCORE PURPOSE"
Let's take a few minutes to envision this from a different perspective. Take out a pen and write down the top 5 things (passions) you would pursue if you no longer own your business?
Recently, a group of business owners provided responses that fell into the following categories:
âś…More time with loved ones (often involving relocation)
âś…Travel and leisure
âś…Philanthropy
âś…Mentoring [younger owners], investing, boards
âś…Writing and teaching
For most, this list will represent what we call our "ENCORE PURPOSE."
NEW PERSPECTIVE PART 2 –
"E-PURPOSE DRIVEN PAYDAY"
Many of us have accumulated very little wealth outside of our business. It is not uncommon to have 70-90% of the wealth tied up in the company. In these cases, the primary funding mechanism for tomorrow's "Encore Purpose" is the proceeds from the sale of the business.
Over 98% of owners recognize the importance of having a plan to prepare for a sale, but less than 25% have a written one. Perhaps the mere mention of words like exit, transition, and succession generates feelings such as uneasiness, fear, denial, or even the dreaded rocking chair.
If our desired outcome is our "Encore Purpose", then lets shift our mindset and describe the vehicle to achieve our outcome as our "E-Purpose Driven Payday."
