A Different Approach
In anticipation of the turnaround, and corresponding increases in confidence and risk-taking (and it is starting to happen), baby boomer owners should know their exit options and be ready. They need to ask themselves these questions:
Is my company salable?
If so, what are the ownership transfer options?
Is my family OK with the decision to sell?
What will I do after I sell?
Have I built the value in my company so the sale proceeds will finance my lifestyle? If not, what can I do to improve its value?
Do I have the right advisors for the process?
Is my company ready for a thorough (and exhaustive) due diligence process?
Just Over the Horizon
For those companies who are a candidate for transfer, now is the time for owners to start thinking about it and preparing for it. For those who successfully prepare, they too can sit back one day and reflect on their successful transfer.
Making Decisions on the Fly
Sometimes, circumstances force you to synthesize on the fly. You have little time to think, and you are forced to act.
Take a Fresh Look at Your Business Model
Moving forward, business models will not be compact and linear but rather dispersed and interconnected. Many people are using the word “network” to describe this kind of business model. In a value network, the challenge will be to identify the core functions—the central identity upon which to build your business.
Enabling Technologies
As dashboards move into the mainstream, they are helping to speed business model innovation—enabling companies to outsource any and all “non-core” activities. If you can still have the full information you need to manage a process, it will matter less and less whether you own the process.
Reading List: Jack – Straight from the Gut and Winning By Jack Welch
Jack Welch has written two business management books based on his time spent as Chairman and CEO of General Electric. The first was Jack – Straight from the Gut, a New York Times bestseller in 2001, and 2005’s Winning.
Performing a Quick Check on Your Strategy
Remember, the purpose of any strategy is to take advantage of the highest value intersection between your strengths and the market’s needs. If you are not in that neighborhood, you will probably not make budget and will definitely not exceed it.
How to Build Value in Your Company
Value is vitally important if you are planning to sell your company. Even if you plan to own and operate the business for many more years, increasing your company’s value will ensure that you have a strong base for expansion and improved profitability over time. If you have ever had a valuation done of your [...]
