Great Article, Shop Owners Must Read

[Joe Marconi]

I know this may be long way off for some shop owners, but every business owner needs to think about an exit strategy. Our future is dependent on the strength of our business that exists today. Our exit strategy is not something way off in the future, it must be part of our daily plan.

 

Below is a link to an interesting article that addresses this subject.

 

http://bit.ly/4JHOLM

[xrac]

I know this may be long way off for some shop owners, but every business owner needs to think about an exit strategy. Our future is dependent on the strength of our business that exists today. Our exit strategy is not something way off in the future, it must be part of our daily plan.

 

Below is a link to an interesting article that addresses this subject.

 

http://bit.ly/4JHOLM

 

This is very, very important if any of us want to get anything close to true worth out of our businesses. I want to work out a buy sell with my service mananger funded by life insurance. He is 7 years younger than I am. It is absoluetely critical that we have an exit plan and have it funded. The current problem I have is that I have a partner who does not work in the business that I have to deal with first. At 57 I am not as young as I once was.

[Joe Marconi]

The fact that you are thinking about it puts you ahead of most. This is critical, I am 54 and would like to think I have built something to sell or at least create options. Too many shop owners have just walked away after 40plus years with nothing more than memories.

[xrac]

The fact that you are thinking about it puts you ahead of most. This is critical, I am 54 and would like to think I have built something to sell or at least create options. Too many shop owners have just walked away after 40plus years with nothing more than memories.

 

Joe, have you done anything yet. It is absolutely critical that you do some planning now. Do you have a potential buyer in an family members or current employees? You may also wind up with a very valuable asset in this website. Have you done any personal planning? Personally I have a will, an advanced medical directive, a living will, a durable power of attorney, and enough permanent life insurance to protect my wife. This I put in place about four years ago. If I got nothing out of the business she would still be o.k.

[Joe Marconi]

Yes, I have been planning. Part of the reason I redeveloped my property is to insure that I have a marketable business with desirable commercial buildings.

 

I re-did my will a few years ago and put my entire business on a written business plan.

 

I don't think my business will be taken over by my family. That remains to be seen. But, I am exploring the idea of an employee purchase option. I have few key workers that actually run the business for me now.

 

I don't have any immediate plans for retirement or a set date. But, my plan is to have options within 6 years.

[Joe Marconi]

Yes, I have been planning. Part of the reason I redeveloped my property is to insure that I have a marketable business with desirable commercial buildings.

 

I re-did my will a few years ago and put my entire business on a written business plan.

 

I don't think my business will be taken over by my family. That remains to be seen. But, I am exploring the idea of an employee purchase option. I have few key workers that actually run the business for me now.

 

I don't have any immediate plans for retirement or a set date. But, my plan is to have options within 6 years.

[xrac]

Yes, I have been planning. Part of the reason I redeveloped my property is to insure that I have a marketable business with desirable commercial buildings.

 

I re-did my will a few years ago and put my entire business on a written business plan.

 

I don't think my business will be taken over by my family. That remains to be seen. But, I am exploring the idea of an employee purchase option. I have few key workers that actually run the business for me now.

 

I don't have any immediate plans for retirement or a set date. But, my plan is to have options within 6 years.

 

Here is another good article on the subject:

 

http://tirereview.com/Article/68575/packag..._max_value.aspx

[Joe Marconi]

I think there are many shop owners today that are at that age where they realize that they need to plan for the future. Too many shop owners years ago walked away after a lifetime in business, only to lock their doors with very little to show for their years of hard work.

 

We are of a different breed. We work hard, but want more than just memories.

[xrac]

Th

e decreasing value of assets in a down economy may make this the ideal time to review your estate plan. At a time of lower interest rates and lower business valuations, beginning to transfer assets out of your estate now can benefit both you and your beneficiaries, according to Mary Jo Lockshin, a partner at Stark & Knoll LPA. http://www.sbnonline.com/Local/Article/18440/65/0/Estate_planning_strategies.aspx

 

Here is a thought if anyone out there is in a position to transfer assets to your children who are going to take the business over. Due to the down economy everything is worth less which has some advantages as far as avoiding paying too much taxes.

[Joe Marconi]

We should all be thinking about our exit stradegy, and estate planning is one of those touchy areas.

[xrac]

A few years ago a woman in her late 40’s to early 50’s walked into our shop with a friend asking to have a tire repaired. As I studied her face I could see she looked tired and drained, as if she carried a great load. I had the car pulled in, went out into the shop returning a few minutes later with the news that the tire was unrepairable and that she needed four tires on her car because they were all bald and worn out. The woman’s friend stepped in a quickly explaining that the woman’s husband had just died from cancer. All her money had been spent on the funeral and she had no money and no job. All the husband had left her was medical bills, debt, and a car with worn out tires. He said friends and family had been helping out as much as possible but they were tapped out.

 

When I heard this I offered to install four good used tires the size the woman needed for only $20 each (they were in very good shape). The woman said she would be back on Monday but would only replace two tires because it was all she could afford and she couldn’t get the $40.00 until then. My heart was sad as I listened and watched this scenario. The woman was slump shouldered and she left the shop. She did come in on Monday and got the two tires.

 

What disturbed me most was this thought: When she was married her husband was this what she saw as her future? Was this the plan? Was this the way her husband had intended to leave her? Did he want her to remember him only for leaving her with a pile of debt, no way to pay the bills, no income, and four bald tires on the car?

 

I have said all of that to remind all of us that we need to be sure that we have plans in place to take care of those we love when we pass from this earth. I am so happy that about four years ago I took out enough life insurance to make certain my wife of 36 1/2 years is taken care of. It hurts every March when I come up with the premium but I tell myself this is a guarantee that my wife will never have to work at Walmart. I strongly encourage everyone of you to take a serious look at what you need to do in this area of your life and business.

[GeeZ]

I am new here. Some points to exiting your business from parallel life (my main business is health care.)

 

1. Don't wait until your business is on the skids to sell. A failing business gets only inventory/equipment at depreciated value.

2. Use a business consultant and attorney to help with the deal. Check several consultants to make sure they are not raping you. You don't want to

make mistakes like leaving leases in your name.

3. If you are financing the deal, check on the new owner monthly.

4. Have something else to do.

 

Good Luck.

[xrac]

I am new here. Some points to exiting your business from parallel life (my main business is health care.)

 

1. Don't wait until your business is on the skids to sell. A failing business gets only inventory/equipment at depreciated value.

2. Use a business consultant and attorney to help with the deal. Check several consultants to make sure they are not raping you. You don't want to

make mistakes like leaving leases in your name.

3. If you are financing the deal, check on the new owner monthly.

4. Have something else to do.

 

Good Luck.

 

GeeZ, welcome to the forum. Those are all valid points. What is your involvement with healthcare and how are you involved in the automotive business?

[Alex]

I am new here.

 

Welcome to AutoShopOwner!

[GeeZ]

GeeZ, welcome to the forum. Those are all valid points. What is your involvement with healthcare and how are you involved in the automotive business?

 

I am a pharmacist and operate a home infusion biz (i.v. in the home) with another pharmacist who is my business partner. www.ivavitalcare.com. I am the senior partner (having put most of the money in) in a performance garage. www.powerfabauto.com. I have been a sports car freak for many years but know NOTHING about operating a garage, I joined this forum hoping to learn something.

 

Thanks for the welcome.

[xrac]

Sad article. All I could think was no succession plan. We all need some type of plan in place to exit our business. We will all exit our businesses some day in one of 5 ways:

 

Death

Disability

Retirement

Selling the Business

Bankruptcy

 

No matter what path we take we need to plan to do it in the most profitable and advantageous way!!

 

 

http://www.tirereview.com/Article/73322/how_do_you_stop_a_successful_dealer.aspx

[xrac]

This Life Insurance needs calculator may be a planning tool that will be useful for some. Planning ahead is something we all need to do.

 

Life Insurance - Insurance needs calculator results - LIFE Foundation

[Joe Marconi]

This Life Insurance needs calculator may be a planning tool that will be useful for some. Planning ahead is something we all need to do.

 

Life Insurance - Insurance needs calculator results - LIFE Foundation

 

It's a great point, and one that is often overlooked. A lot of us may think nothing will happen to us, but the reality is we need to prepare for the worst. We also owe to our families to have them protected.

 

Tough subject, but we all need to deal with it.