Here are five reasons why most baby boomer entrepreneurs won’t have a valuable business:
1. No planning and positioning for the oncoming demographic tsunami. During the next five to ten years, a huge wave of retiring boomer business owners will be overwhelming the merger and acquisition market place. This means that there’s going to be too many wanting sellers for not enough qualified buyers, and the competitive forces will drive down the values and selling prices.
2. Not enough business value for potential buyers. Without having an ongoing, proactive, systematic approach to building the value of your business, the business isn’t likely to grow sufficiently relative to your peers, and foster potential interest from buyers. Therefore, the business won’t survive beyond you to provide financial wellbeing for loyal employees and loved ones. In other words, you merely own a job, not a business.
3. No team of qualified successors in place. I know from experience that it takes time to assemble and train the right team of employees who can run the business successfully without depending upon your daily presence. Accomplishing this is critical in order to make the business more valuable and sellable.
4. Interested buyers with no money. It’s a problem when there are potential buyers who are interested in taking over the business, but they don’t have the financial means to pay the owner enough to accomplish the sale. This is particularly true with regard to an internal sale and transition. and becomes particularly difficult when family members are involved in the business as well.
5. Dysfunctional business/family-related issues. Family member involvement both inside and outside the business can bring strife and tremendous stress to an entrepreneur, especial when the owner wants to move on beyond the business. More often than not, problematic psychological issues outweigh the economic issues, and can result in destruction outcomes for both the family and business.
CLICK HERE if you’re a baby boomer entrepreneur who might be interested in learning about joining a Mastermind Group, which would enable you to interact and address these issues and more with a limited number of other business owners.