The 40 hour working week doesn’t apply to business owners. Passion and drive will have you spending the bulk of your waking hours at work or thinking about work - which means leaving your business is one of the biggest decisions you will have to make.
For some, the decision will come easily - especially if circumstances change or force your hand. For the majority of others, it can be a highly involved and conflicting decision.
How do you know when you’re ready move to the next chapter of your life? Pay attention to some of the common signals, and it may help you with your decision.
Beyond any warning signs, you may have a gut feeling. Don’t ignore what your instincts tell you. No one knows your work environment or yourself better than you do. If you get the sense that you’re ready to move on, heed that inner voice and go exploring.
Make it a habit to check in with yourself (or with a trusted friend) at least twice a year. Not only is it a good opportunity to review your wins and accomplishments, but it is also a chance to stop and look around you - you never know what you might see when you come up for air.
The clearest signal that you’re ready to leave your business is that you’ve reached retirement age and require more liquidity to live comfortably for your intended lifestyle. In some cases, you may find that your business responsibilities are affecting your health, which means a serious inventory of your priorities needs to take place. Health and family should always come first - especially as your reach retirement.
Make it a habit to check in with yourself (or with a trusted friend) at least twice a year. Not only is it a good opportunity to review your wins and accomplishments, but it is also a chance to stop and look around you - you never know what you might see when you come up for air.
Most business owners aim for economic independence when taking their leap into the entrepreneurial world. However, starting your own venture often means leaving the security of a salary behind for financial uncertainty. To manifest their vision, entrepreneurs often go through financial highs and lows. Many put forth their own life savings and personal funds behind their vision.
Between number crunching and loans, you may find that you need to seek outside investment — whether it’s for assets, expansion or new hires. You may be able to partner with someone that has those resources in a relationship based on revenue sharing.
In other cases, you may want an external investor who brings in the capital, but also serves as a mentor and connects your business to new possibilities in order to propel the company forward.
Some business owners are referred to as “serial entrepreneurs”. This subset of entrepreneurs finds thrill and excitement in launching new ventures. Serial entrepreneurs are driven to scale a business from startup phase into a sustainable growth trajectory. They are excited by the challenge of building a business from the ground up and often want to move on to the next project once they’ve accomplished their goal.
If you relate to any of these characteristics, you may be one of the few who is on the road to becoming a serial entrepreneur, starting by exiting your current project.
If you find that you can’t stop thinking about what you want to do next or already have a new venture in the works, it could be time to exit your business in some capacity.
Entrepreneurs or business owners are always curious - usually about how they can evolve their own business, but often about new projects, new ideas and new ventures.
You’ll find yourself reading papers, studies, or books which give you new ideas for your next project. If you find that you can’t stop thinking about what you want to do next or already have a new venture in the works, it could be time to exit your business in some capacity. If your business is revenue-positive, you can likely sell your business to an outside party to continue its trajectory.
Many business owners hold on to projects that exhaust them personally and deplete their resources. Sometimes, this may lead you to cut your losses and abandon your business altogether. Sometimes you recognize that you do not have the necessary skillset or necessary capital to take your business to it’s full potential.
Once you come to this realization, you may seek a new management team or external investor to bring in the necessary resources to fill in the gaps and transform the business for success.
Choosing your exit strategy
Once the signals are clear, the next step is to choose your exit strategy. Choosing the best exit strategy rests on matching your business and personal goals. In fact, we’ve prepared a guide that can help you choose your exit strategy here.
Skidmore Group aspires to create a better world by accelerating your talents, consolidating businesses, and working with management teams who are hungry and willing to grow with Skidmore’s leadership. If you are ready to exit your business, and are seeking an investor, contact Skidmore Group today. With the right plan, network, capital and our 70 years of expertise, we can elevate your business to become an industry leader.