Five Key Questions for Planning a Cash Rich Exit
This past month or so, here on the blog and on “I’m a Millionaire. So Now What?” I’ve been sharing stories from CEOs and founders who have all succeeded in securing a cash-rich exit from their respective businesses, and who will be guests at the upcoming “tales from the trenches” section of my upcoming workshop.
Of course, I’m talking about my upcoming premiere workshop for business owners, Double to Sell, that I’m *just a tad* excited about – LOL - featuring Cameron Herold, AKA the CEO Whisperer.
Let me catch you up, in case you don’t know Cameron:
He had 14 employees by age 21.
Helped build 2 $100 MILLION companies by age 35.
And he engineered, over 6 years, 1-800-GOT-JUNK?’s spectacular growth from $2 to $106 million.
And yes - you’ll get up close and personal access to his disruptive thinking this coming November 4th and 5th (all virtual, of course!).
Five Questions You Need to Ponder Before Planning Your Cash-Rich Exit
Anyhow, I digress. On the podcast this week, I decided to go solo, because I wanted to get you all thinking about the nitty-gritty of planning YOUR cash-rich exit strategy. You might think you have all the Is dotted and Ts crossed, but I’d bet good money that you actually don’t.
Here are five questions for you to ponder before you get anywhere close to signing a deal on your company or handing it off to the next generation.
❶ Are you clear about how your business is set up?
❷ What is its worth?
❸ What happens if an unexpected tragedy occurs?
❹ Do you already have an Exit Plan?
❺ What about next steps, post-sale? Who are you outside of CEO of XYZ?
Cast a critical eye, friends. The goal in really digging deep, and answering honestly, should be to take the emotion out of the equation and look at the facts.
Is your business – that you’ve spent years of hard work building – really worth what you think it is? Or is it worth more? The markets have changed – and you should do your homework before settling on a number. Do you have a complicated corporate structure with co-founders, family members and investors? Have you incorporated yet? Have holding companies?
And, have you fully (and honestly) mapped out what would happen to your company should you fall ill, or worse? Have you protected what or who needs to be protected in case of an unexpected tragedy? What if you or your partners couldn’t work anymore? Is your company safe? Would cash flow be interrupted?
And if you already have an exit plan (perhaps you even “built to sell”, right from the get-go) the mindset behind that exit is as important as the technical, practical steps required secure the sale. Maybe “retire” is a dirty word in your books. I'm okay with that. But what are you going to do with your down time? How are you going to find purpose? Will you get involved with new, up and coming startups? Share your leadership and knowledge through mentoring? Invest in the next generation?
Overall, are all the corners and borders of your particular business jigsaw puzzle lined up and ready to be filled in?
I’m going to keep things short here today, because the above is already a lot to think about. Plus, I’m hoping that you’ll take 20 minutes out of your busy day and have a listen to the podcast itself.
And if you don’t have the answers to the above questions? Then please join me (and Cameron Herold!) in November for Double to Sell! Space is limited, so register now. You’ll walk away from this event with a clear and vivid vision for the next three, five, or ten years of business planning to ensure you reap the maximum benefits from all your years of hard work.
Hope to see you there!
If you’re an entrepreneur looking to exit, or you’re at the helm of a thriving business or startup, I would love to talk with you about your stories! You can drop me a line here.
Plus, if you are craving like-minded conversation with growth-oriented business owners, consider joining me and eight other business owners, investors and entrepreneurs for our next two editions of Elevated Conversations - watch this space for more details!
“I’m a Millionaire. So Now What?” is brought to you by Double to Sell - Canada's Premier Invitation-ONLY workshop for business owners wanting a cash-rich exit in 10 years or less. For more information, or to register, please visit the “Double to Sell” website.