Sounds like a simple enough question.
But 90% of business owners get the answer wrong.
How can I say that with any confidence?
Of those business owners who put their companies on the market, 90% fail to find a buyer, according to a national investment banking firm.
That astonishing statistic means that business owners did not know they had a big decision to make about the future of their business. They assumed that they could sell their companies when they want for what they want.
And this misguided assumption will ruin the financial futures of business owners and their families.
If you own a business, you must decide whether the company is a:
Lifestyle Business:Â There to serve your lifestyle needs, which means it will be closed one day (as it is not saleable or transferable).
Wealth Creation Asset:Â An asset that you will want to sell one day to get a return on your investment of blood, sweat and tears.
A Lifestyle Business is not saleable. And since most companies, no matter how successful they are, are operated for the benefit of the owners, they fail to sell.
And for some reason, most business owners do not know they have built a Lifestyle Business, not a saleable asset.
A Wealth Creation Asset rewards the current owner and the future owner.
A Wealth Creation Asset continues to thrive as a great place to work and do business with long after the current owner has moved on to his or her next act.
If you own a business and you want to know how to evaluate whether to keep your Lifestyle Business or grow a Wealth Creation Asset so that you will one day get a return on your investment, you need to get these books:
And then when you have made the decision to make the necessary changes to make your company into a Wealth Creation Asset, then you need to get these companion books:
If you are an advisor to clients who own businesses, you might want to learn how to have the kind of challenging conversation that helps business owners come to terms with this difficult â€˜fork in the road momentâ€™.
Contact Corrie Winter at CorrieW at SpiritWest.com to arrange for me to show your advisors how to navigate this life-altering conversation with your clients.