New Year, New Ventures
The start of a New Year brings time for reflection, goal setting, and optimism. I always enjoy the process of looking back on the last year and seeing how far I have come. As a business owner myself, and a business broker assisting other entrepreneurs buy and sell their own businesses, New Years is a time to appreciate the fact that our collective businesses have survived into another year. If you are a business owner, you should feel proud of what you have built with your hard work and ingenuity. Small businesses such as yours support not only your family, but your employees and your community.
I’m sure that it comes as no surprise that the goals we set at the beginning of the year often provide the framework for the year’s successes. So even if I have not reached all of my aspirational goals for the year, I am always surprised by how much progress I made and all of the problems and detours that I overcame. That being said, there are twists and turns that cause goals to change or priorities to shift.
This year I am following the example of a friend. Every year she chooses a word to inspire her and act as the theme for the upcoming year to help keep things on track. This year, I have chosen the word: PREPARATION.
Whether you are buying or selling a business in 2025, I would encourage you to plan ahead and consider the outcome that you want for your business, your family, your employees, and yourself. With all the time that you invest into your business as a business owner, the outcome should be serving your needs and those of your family.
With 3-5 years being ideal for exiting your business with the best possible outcome, it’s never too early to look out over the horizon and start considering the necessary steps for your exit plan.
At the Liberty Group, we hope that everyone will be able to leave their business on their terms and at a time of their choosing, but this isn’t always the case. We encourage early preparation not only because your business will be easier to run and manage in the present, but because a prepared business is more likely to provide positive outcomes when facing unforeseen circumstances. There are always things beyond our control as business owners, but being well structured and prepared will minimize the negative impacts.
So, in your New Year’s ruminations consider these questions:
When I no longer own/operate the business what do I want for
- my family?
- myself?
- my employees?
- the legacy of my business?
Give some thought to what you will do in your next act.
- What are you passionate about outside of your business?
- What do you want to do with your time once you are no longer working in your business?
- How will you introduce yourself at parties? (I know this sounds funny, but losing your identity is a major source of regret after business owners sell!)
Get Real with the Numbers
- How much will your lifestyle cost?
- What are your current assets/passive income?
- What will you need in order to meet your retirement goals?
- What is the GAP between what you need to retire and where you are currently?
Too many business owners wait until they are desperate to exit before they begin their preparation. They are counting on the sale of their business to fulfill their financial needs, but they have not done the homework to know if this is even possible.
If you need to sell your business to successfully fund your retirement goals, get a professional valuation of your business with an evaluation of saleability earlier rather than later. There are steps you can take with enough time to make your business saleable and increase its value with enough time. The reality is that it is better to know the truth of your situation early so that you can adjust.
In 2025 I encourage you to not just envision your future, but to take the first steps in preparing for the future you envision. Whether the transitioning your business is in the distant future or closer than you would like, preparation is the key to positioning your business and for the best outcome possible.
At the Liberty Group of Nevada we help entrepreneurs buy, build, and sell quality businesses. If you have questions about the value of your business, the steps you can take to increase your saleability and/or value, or if you need information on the process of selling (or buying) a business – we would be happy to take your call to discuss your next steps.