I was in the back row of the conference hall on the 21st floor of a skyscraper in downtown San Antonio. I had to bob and weave between the heads that blocked my view to the stage where the presenter said,
"The purpose of selling a business is different from the purpose of starting one."
And I was fascinated because he is so right! And today I want to walk through a few reasons small business owners are motivated to do each. I hope you'll join me!
What's the purpose of starting business?
There are a variety of reasons people are motivated to start a business. Here are the ones I come across most often:
1. More freedom of time
2. More alignment with purpose and values
3. More lucrative
4. A damn good idea
This is not an exhaustive list but I sense it hits the major motivations. Which reason resonates most with you as a business owner? Do you think there are any major motivations that I've missed?
What's the purpose of selling a business?
As Warren Buffet is rumored to have said, "The time to sell a good business is never." If that's true, how do you figure out the best time to sell?
I am learning that at some point, it's no longer about the money. Because if making the MOST money possible were the greatest motivator, people would never sell their profitable businesses; they would simply keep it and continue to live on the proceeds.
Trouble is, at some point, it's not longer about the money. So, here are a few purposes for selling that I've seen:
3. Want to spend more time with family
4. Want to transition to a different type of business ownership
5. Want to see employees/customers/suppliers/vendors taken care of
6. Want to leave a legacy (family or otherwise)
7. Want to see the business grow (with a strategic buyer)
How about you? At some point every business owner will exit their business. The question is, will it be purposeful and intentional? Or will it be in response to someone or something forcing your hand? Don't get pressed into a corner. Give me a call now for a strategy chat about your upcoming exit!