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After 39 years in business, it's time to get serious about my exit plan. While I don't think I will ever truly retire, I do think it's time to plan the next chapter in my life. I would like to hear from shop owners out there in the same situation. What are your plans? Are you selling your repair shop? Do you have a succession plan? And are you thinking about a different line of work to keep you busy?
Our industry has many shop owners well into their 60s and 70s, some even older. For many, they have taken a secondary role and have handed the business off to a younger family member. For others, they know that there are more years behind them then in front of them and planning their exit plan or succession plan. A question for all the senior shop owners out there. What are your plans for future? Sell the business? Keep it in the family? Continue to work as long as your can? Or something else?
Hi everyone, I had a conversation with a client yesterday who just discovered he wasn't going to be able to sell his business, at the number he hoped for. A little background: We have only been working with him for 4 months. The original plan was to help him increase his sales and profits and improve his paycheck. Basically, he wanted to put systems in place to accomplish the following things: Increase the sales from $650,000 to a million dollars per year Maximize the gross profit Phase himself out of the day to day business operations He is currently one of the two service advisors and was in the process of interviewing his replacement. His goal for selling the business was 2019. To make a long story short, two weeks ago, he found out that due to an unexpected family situation, he must sell immediately. He was shocked to find out that his business is not worth what he hoped to get out of it, mostly due to a number of factors discussed in these articles: http://www.shopownermag.com/know-shops-sellability-score-part-1/ http://www.shopownermag.com/know-shops-sellability-score-part-2/ The number one factor that decreased the current value of his business is described below: To be valuable to a buyer, your business must be able to succeed and grow without you at the hub of all activities, and your employees must be more than mere spokes that cannot operate independently of you. And the more your customers need you and ask for you personally, the harder it is for you to scale back your hours, take a vacation or eventually sell your business. Your business is significantly more valuable if you are successful at building a “brand,” not simply a place where your own reputation and your personal handling of customers is what brings them back. It’s the difference between thinking of yourself as having a “job” that requires you to show up at work to make money, versus creating a “business” where the brand is more important than the personality of the founder. The majority of buyers who contact me don’t want to be a slave to the business and work every hour that the business is open. In fact, many buyers already own a business and are looking to supplement their income by purchasing an additional business where they will provide part-time supervision and marketing and business acumen. These buyers will pay a premium for a business that can clearly demonstrate its ability to run profitably without the seller as the critical hub. It's interesting to see Art's current listings and see how the performance numbers relate to the listing price for the businesses: https://art-blumenthal.com/ What are your thoughts on the sellability score Art talks about, in his articles?