One New Year resolution that could have many benefits for you and your business in 2022
As we move towards 2022, many people will begin by deciding which New Year’s resolution to adopt. Particularly as we are currently looking at further Covid restrictions, there is ample time to choose which resolution would be most beneficial during these tough times. For instance, healthy eating, staying fit, and taking up activities that will help you stay positive are all useful ideas if we are going to be spending more time at home.
According to a YouGov poll around a fifth of Britons made New Year’s resolutions for 2021. Sadly only 25% of these kept their resolutions up as the pressures and demands of the working year began to take over.
The top resolutions were:
- Do more exercise
- Spend less time on social media
- Spend more time with family and friends
- Drink less alcohol
- Take up a hobby
These results were based on the population at large but it would be interesting to know what busy and pressurised business owners were thinking about when it came to New Year resolutions. We don’t have the research to tell us the answer, but we can surmise that the results largely follow those of the public, with resolution number 3 being high on their priority lists.
However, given how tough the business climate has been over the last couple of years, and the ongoing challenges companies are facing with Covid, now could be the perfect time for business owners to start thinking about succession and exit planning.
Planning to exit your business takes time and careful thought and may well require one or more years of effort to achieve the right result. Having built up a business over several decades a business owner or owners will naturally be at the heart of their enterprise and often be central to key customer relationships, operations and sales and marketing.
Although this may give the owners a sense of control and satisfaction that things are run in the right way, if they are planning to exit, they need to pass on the ongoing management to a trusted team and start to look at the bigger picture and getting their business exit ready and maximising the value of the sale to a buyer.
It is very common, when you ask a business owner what price they think their company is worth, for them to overestimate the value of their operation to a buyer. Therefore, when we start a discussion with a client who decides to exit, our first task is a Stage One Insights report which looks in depth at the business and gives an accurate estimate of worth, based on a buyer’s perspective and which considers the appetite for acquisition in their market sector.
The report, while very illuminating, can be quite sobering too, as it demonstrates the true value and shows what an owner needs to do with their business to get it to the point where it will command the price that will reflect their life’s work.
Once a client understands the real value of their business and how to maximise their return on exit, they can move forward confidently knowing they have a clear plan that will achieve their personal objectives and leave the company in good shape for the future with a strong and committed management team.
At Succession Plus we have developed a unique 21-Step plan that leads clients through every aspect of managing this important stage in the lifecycle of their business.
You probably only sell one business in your lifetime so make sure you get it right and plan for success.
So, if you are reading this and thinking about resolutions for 2022 make sure you resolve to take a serious step towards managing your succession and exit. It could be the most important decision of your life.