Rewriting My Business Exit Story: 6 Pieces of Wisdom for My 25-Year-Old Self
I ventured forth into the vibrant world of entrepreneurship, armed with passion and a relentless thirst for success. The opportunity of a lifetime awaited me at Summerlee Office Solutions, where I became a partner. Yet, self-doubt clouded my vision; other than instinct, I lacked experience and real business acumen. My business partner, Norine, obviously saw something in me that I couldn't see in myself.
While I had a strong drive to prove myself, I harboured an aversion to the corporate world, courtesy of a clash with my boss in my first job. Feeling wronged, I believed I wasn't meant for the corporate environment. That decision would forever change my life. For better or worse, I guess time will tell.
However, Norine was a guiding light. Over 18 years, we turned a $2 million venture into a $35 million success. Though our business thrived for much of the time, we plowed every penny back in, neglecting our need to pay down personal debt.
Then, 2008 arrived, flipping our world upside down. A harsh revelation dawned – a strong balance sheet doesn't guarantee personal wealth. An early exit plan could have changed our financial destiny.
In February 2010, we bid farewell to our business. I left with nothing. I had a young family to support and needed to find a new path. There were a couple of zigzags along the way, but I eventually realized the path I needed to take. Thus, The Finish Line Group was born from my experiential wisdom.
Today, I realize the significance of early exit planning. It may not have altered our company's fate, but it could have transformed our personal financial outcomes. Timing is the hero's secret weapon. As a business owner and planner, I empower others to script their tales of triumph and leave their business on their terms.
The art of timing can turn dreams into realities. With The Finish Line Group, I help others craft their heroic narratives, secure their prosperity, claim victory in their quest for a brighter future and ultimately reach their finish line.
Amidst this journey, the question arises – when should one start planning their exit from their business? Surprisingly, the answer is: as soon as they decide to become an entrepreneur. The foundation for a smooth and successful exit is laid initially, ensuring a prosperous future. As humility and experience as my goalposts, these are the 6 foundational elements that I would’ve done differently.
Cost-Effective Preparations:
Picture this - you're building a house and decide to lay a strong foundation right from the start. Similarly, early planning for your business exit sets the groundwork for crucial strategies without breaking the bank. These investments are like seeds that grow into a flourishing garden of opportunities, making every penny worthwhile.
Embracing the Uncertainties:
Life is unpredictable, and we all face unforeseen twists and turns. That's why early exit planning acts as a safety net, guarding against unexpected events like health issues or economic downturns. It's like having an umbrella for the stormy days, ensuring your business stays resilient through the uncertainties.
The Power of Compounding:
Time is the true magic of financial planning. Like planting a seed and watching it grow into a mighty tree, early saving and investing leverage the power of compounding. Your funds steadily grow, creating a solid financial cushion to support you during your exit and beyond.
The Dual Benefit of Funds:
Think of early exit planning as a dual-purpose tool. Not only does it accumulate funds for your eventual exit, but it also grants you financial flexibility throughout your entrepreneurial journey. It's like having an ace up your sleeve for any business challenge that comes your way.
Tax Minimization Strategies:
Taxes - are an inevitable part of life, but early exit planning can help you navigate the tax maze. By proactively strategizing how your business operates and manages its finances, you position yourself for optimal tax outcomes when selling your business. It's like creating a roadmap that leads to financial efficiency.
Creditor Protection:
While accumulating wealth is crucial, safeguarding it from potential creditors is equally essential. Think of it as building a fortress to protect your hard-earned assets. Ensuring creditor protection ensures that your financial future remains secure, even in turbulent times.
For all business owners, embrace the art of timing. Plan your exit from day one, and watch your business flourish, building a bright and secure future. Most entrepreneurs I talk to have a love/hate relationship with the bank: they’re there when you don’t need them and nowhere to be found when you do. Wouldn’t you rather not have to rely upon the bank at all? I guess that is rhetorical. The early planner catches the best opportunities for success.
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