Bury You in Your Boots? But Plan as if You'll Leave Your Business One Day

In my conversations with numerous business owners, I've come across a common sentiment: the idea of never stopping or retiring from running their business. It's not an act of defiance, but rather a deep-rooted feeling that resonates within their hearts. Many justify their choice by expressing their love for what they do and their inability to imagine doing anything else. They believe they would be bored after a year of travelling or golfing. For some, their business is their purpose, their identity. They admit that they wouldn't know what to do if they didn't have a daily destination to go to. Others even confide that their marriages wouldn't survive without the outlet their business provides.

I understand this mindset because I experienced it firsthand in my previous furniture business, and I feel a similar connection to my current business at The Finish Line Group. The adrenaline that comes from helping people, feeling valued, and making a difference is what propels us out of bed each morning, eager to tackle the day. Without a vision, we risk perishing; without continuous growth, we risk stagnation.

However, there inevitably comes a day when a business owner decides they're done and want to exit. I've faced this reality in my furniture business, and I anticipate it will happen with The Finish Line Group one day. Yet, I continue to learn something new and profound every single day. It's the challenge of an entrepreneurial mindset - always seeking the next opportunity or "bright shiny object."

That's why I like to share a valuable philosophy with my clients: plan as if you're going to exit your business one day, regardless of whether you actually do. This involves several important steps:

1) Ensuring that your business can operate without your direct involvement. This serves you well from a future valuation standpoint and prepares you for the possibility of one day walking into the office and declaring your departure. The heavy lifting will already be handled by having systems and processes in place.

2) Identifying and developing a potential successor within your company, someone who can seamlessly step into your role when the time comes.

3) Implementing tax minimization strategies because time becomes your ally when it comes to extracting funds from your company. Planning ahead can help you minimize tax liabilities and maximize your financial gains.

4) Building an advisory team that you can rely on when the day to exit arrives. Having experts in place who understand your business and its intricacies will ensure a smooth transition.

By incorporating these steps into your business plan, you will enhance your preparedness for the future, whether you ultimately decide to sell your business or continue to enjoy the rewards of your hard work. While it's possible that you may never choose to retire or sell your business, having these measures in place ensures that if you wake up one day with a change of heart, you'll have already tackled the crucial groundwork. This proactive approach lets you focus on the possibilities ahead, knowing that you have set yourself up for success in whatever path you choose.