Ok, I’m just going to call it here. Say what you want.
In some business circles building a company and selling it seems like the ultimate success. “Wow! You did so well!” people would say.
But here’s what I see/feel in the majority of cases. Selling is giving up. Selling is abdication. Selling is out of fear.
What business owner in his right mind would sell something he/she has control over, believes in themselves and their people and the mission they have preached about all these years if they had the faith they could continue and even make tomorrow better? Not many.
If your sales are at 50, and you feel you can grow them each year, why would you sell? Then you’d have nothing to do. And if you were the creative soul you say you are you wouldn’t be happy on the couch or golf course for long. You’d start something new as an amateur, and have to go from zero to 10, which is far more difficult than taking your old company from 50 to 60.
Most business owners THAT I KNOW AND SEE who sell, are giving up. They are at their limit, and instead of growing personally (internally) to grow the business (that’s scary), they sell it and say “You do it”.
Many sell out of fear or even desperation. I got it to size 50, but I am afraid that it won’t last, and afraid something bad will happen I have to deal with. Let me unload this turkey before that happens because I don’t trust my ability to handle it.
Life is a journey of personal growth and a business in a free country in this age is the ultimate playground for creative expression. You can make changes to your business as you learn, even big structural ones. You have to control your emotions, learn to enjoy the ride, and change yourself, your thinking and your duties and how you show up to others as you go.
Selling is not a beginning. It’s usually the end, or the beginning of it.
While there are some good reasons for selling your business (not discussed here), most of what I see is giving up on you and your people. It’s a cop-out for your getting better. Believe in you. Face you. Don’t give up on you.
There, is said it. Amen.
Let the comments fly with the orange button.
Thank you. I celebrated the 40th year in business this year and can’t imagine what I could do that would make more of an impact, particularly on my 60+ employee’s lives, over 10 have been here 20 years. Grew 22% this year. Tried to retire at 60 but to what?
Nothing like hitting the world with a little truth! You know what hurts worse than a lie?… the truth! The day you quit working and give up is the day you start dying. This train has a long way to go!
When you sell out the people that helped you build your empire get left in the trash. Is a larger bank account worth just one lost friendship? I say no!
There is no greater gift to your people, community, and yourself than making a difference in the lives of all that come in contact with you! If it was easy you would not have done it this long so why take the easy way out? Can you say with certainty that the prospective buyer will take care of all you hold dear? You have a purpose so do not lose sight of it…..
Well Said my friend. Truth heals.
I agree with you Larry. I thought about selling my businessesbefore, but decided not to. I’m really glad that I decided not to. I actually really love what I do and wouldn’t want to start from zero again like you said. Thanks Larry!
We are 33 years in business and I am 61 years old. I couldn’t agree more with everything you said, the thought of closing our business and finding a different way to help people scares the hell out of me. I enjoy what I do and don’t plan on stopping anytime soon. Thanks Mike
While I am no business expert, I respectfully disagree. From my vantage point, I see introductory business owners and entrepreneurs do an excellent job who sell justifiably. Sometimes owners are in a position where the scaleable margins are just not there and if the business is to grow and be competitive, it requires surrendering a majority stake or selling in order to attract the capital required to drastically expand and scale. They’ve simply taken it as far as it can go for now. What better option is there in that context?
sometimes its not about the business….sometimes its about moving on, doing something different, living life & not living to run a business, you can argue balance but sometimes separation is what is needed it find that balance
Well said Larry. I love to build things – businesses especially. The process of growth and improvement is very rewarding – and challenging for sure. It is the journey that I love. Thanks as always for your words of wisdom and things to think about today.
AMEN x10!!!!!!!!!!!!!!!!!!!!!!!
I believe there comes a time in everyones life where we need to move forward and move on. If you are not personally “sound” you will not be able to advance the business until you are. Need to take care of one’s self before anyone else.
For some, you give up the first part of your life, time with your young family to reap the rewards later in life.
Some like to make their goal and move on. staying at the craps table forever usually isn’t the smartest thing to do.
Some make money, leave a legacy and leave on a high note.
It all depends on your industry.
My husband and I have a very small company doing inspections and diagnostics on homes and small commercial buildings. We are aging so we are training others to operate the company as we are 1) physically not able to do some tasks, 2) wanting more time as we move into semi retirement. We want the company to continue as it has taken several years to build the reputation and relationships with our customers that takes time. So we are looking at possibly transitioning into an employee owned company or selling. Interested to hear how others think.
Many truths in this article – thank you Larry!
Wow this was awesome Larry, I love the way you think… daily 😉
Well I for one would love to hear what you consider the legitimate reasons for selling? I think at some point when we age we need to face the inevitable…for one…..still operating until death is not a good transition plan.
I love it !! I have struggled with this thought and i can not see it. It feels like what would i do then thank you very much it helped me to clear it in my head to see that someone else sees it that way as well! You all have a great day
100% agree, having seen the outcome of this first hand, I can say without a doubt that selling is quitting. There’s nothing worse than watching a great company get sold to a line up of individuals that are heartless and calculative in their design to dismantle a company. It’s like parting out a good car, why would you ever do it? Quitters are not long term winners. What ever happened to building a business and handing it down to your family, or even better, handing it down to a long term vested employee? People just have no loyalty to each other these days. Get back to it and stop being greedy.. You cant argue with most of this is greed driven. So sick of the freaking leaches that are coming in and sucking the life out of this network and the people who buy into this theory from an outsider.. There, i said it!
Amen & Amen.
I did exactly what you said. I ran into a lot of problems an decided I was going to sell. Then I started thinking about what would I do next. Hunkered down, turned it around, and looking at making changes in areas that caused my original problems.
Thanks for the encouragement words.
I totally agree; I am finally learning how to give up and it’s great.
Hi Larry, I love the blogs and your book. My question is, “Have you ever sold a business?, If yes why? ” Whatever the answer great topic.
Larry, I read your email today after a very discouraging yesterday. I run a roofing company and I take every comment to heart good or bad. I’ve been in this business since 1992 first as a salesman/estimator and then as an owner in 2005. Its been a lot of work, good days, bad days, successes and some failures. But overall I am proud of my work helping people take care of their homes. Recently I have run into some difficult situations because of lack of performance by my company meaning lack of good quality people that look at the job as not just a pay check but a service. I am 69 years old, work way to long of days and am flat out tired. I read your blog almost everyday and get a lot of encouragement from it. You have some good advice for me most of the time and I appreciate this. But you say….don’t quit, don’t sell, let the character development take place, rise to the challenge. I know I need help, I know I can not do this by myself. But I live in the SF Bay area and to get good help cost a lot of money. A good solid experienced roofer can cost $75-80000 plus WC and gas. They are hard to find and I don’t really want to or have the energy to go another 5-10 years at this the way I have it set up now. I am not good at all the things I have to do. I know you would say and have said, “find the right person for the job, share the responsibilities. That the rub. I truly would like to enjoy my grand kids and spend more time at something that interest me more. Life is short and I am afraid I have spent most of it working hard with the wrong vehicle. I truly want to give my wife more. She has worked all our married life as well. I would like to use this vehicle to spring board to another business if possible. Thanks for the challenge, just wish I was in a better position.
sincerely, Jerry
Wow!
You are 100% right.
How about retirement without selling. Still being somewhat involved? Do you consider that quitting also?
Larry, you’ve said “say no for a better yes”. Sometimes the yes and no are not both within the business but instead one is the business and the other is the life your are making sacrifices against, for it. Time and energy are not infinite and where you spend those resources compounds. My 2 cents.