If you feel that selling your business is an escape from drudgery and burden, I say, with all due respect, you haven’t done it right. Selling is an abdication in that case.
It is a way out, yes. But there are other ways out of the drudgery without parting from your business. There is value in your business that can be realized and compounded. You’re the leader, and what happens is up to you. So your own development will determine what happens to the business.
When you have a big business, people count on it and you. It is your right to sell it – it’s yours. But too often these days (not always) selling the business is the beginning of its demise – not good for the employees.
You can retire without selling in a number of ways, especially if you have done it right before you “retire”. If you have not done it right, you have few options, if any. You don’t need a grown responsible child to choose someone to run it for you. There are many people who would love to do that for you. Chances are, there is someone right in front of you that would be great. What and who you see depends on the lenses you’ve been wearing. You can be involved as much or as little as you like. It’s yours to design.
If your business is a turkey because you are in the wrong industry or place, creative quitting makes sense. You may even call it creative destruction, or a radical restructuring.
I can’t address every situation here. There are many dimensions to an owner’s situation. Businesses that need capital to grow, (I’m a contractor and I don’t), business owners that have not figured it out and don’t want to try anymore – maybe giving up is all they have energy for.
I can sell for $4 and pay tax and wind up with $2.80.
Or I can earn $1 this year, and $1.20 the next, and $1.50 the next, and $1.75 the year after and $2.00 etc., and after 5 years I now have $4.47 after tax and still own a more valuable business. If I am enjoying it and enjoying the people I work with, I am living a great life. I am in charge, can express my creativity, use my business for good in so many ways, get so many tax free perks (company vehicles, etc, etc), and engage my free spirit in pursuit.
What I am saying everyone, is that if you don’t like it, you are doing it wrong. Change you to change your business. It can be a wonderful adventure filled with dear friends, highs (and yes, some lows), and profit enough to enable a joyful happy experience here on earth.
I hope my blogs help you think through issues important to you each day.
Larry,
This is a very helpful discussion for us. Even though we are more than 10 years out from “Retiring” we are starting to think about what we want. Selling had always seemed like the best option, but this conversation is opening up some new ways of thinking about it.
Hearing a different point of view incites discussion! Love it!
Perhaps “incite” would be the wrong word choice, but love the discussion that ensues for this topic 🙂
Thank you Larry. This discussion is both helpful and accurate. I’m operating business #3 after selling business 1for relocation to another state for ministry and then business 2 for relocation back for elderly parents. Every owner should have a plan, that is “their” choice, on how they will exit the business. It’s different for every one. I agree, quitting is not a good option. There are too many better options out there. My greatest takeaways from this discussion have been “if you don’t like it, you are doing it wrong” and “your our own development will determine what happens to the business”. Something missing from this discussion is the emotional connection between an owner and the business, meaning the employees, customers, vendors etc. It’s strong. Every time I lost that connection through a sale I wasn’t happy until I got it back. Regarding properly planned exits that continue a legacy, I’d love to hear your thoughts on ESOP’s or key employee buy-outs. Thanks for sharing and Merry Christmas to you and yours.
Great discussion – hits home that I can do more to like what I do even more!
Merry Christmas.
Nicely said! ?
Great post Larry. We are actually going thru this exact situation now.
These have been some very helpful words of encouragement. Thank you!
Thank you. For the inspiration and reality.