The Summer Solstice is the longest day of the year. How will you make the most of the day? Will you relax, unwind, and enjoy the sunshine? Or will you, like 86% of small business owners, spend the weekend day working?
How much time do you think you spend working in your lifetime?
How Much Time Do Business Owners Spend “At Work”?
According to Forbes, “nearly one quarter (23%) business owners take fewer than two vacation days annually”. Work envelopes every aspect of business owner’s lives that even on vacation, which is meant to be a literal break from work, 75% of business owners still conduct business activities.
Christine Baker, Co-Founder and Director of Strategic Nudge, said to Business News Daily, “When you’re an entrepreneur, the hours you work are a meaningless measure. You work until you achieve what you need – whether that’s your first product launch, first customer sale, first year of $100,000 turnover or whatever. If that takes 20 or 70 hours a week, so be it”.
On average 30% of our lives, or 25-30 years, is spent working. Business owners, and in particular, Baby Boomer business owners, spend even more of their lives working. It is no wonder that thinking about exiting your business is the source of stress for many business owners.
Building Value Before a Business Exit: Decentralizing the Business Owner
Owners like to have their stamp on every aspect of their business, but most do not realize how detrimental this can be for the success of their company. A business will fail if it is dependent on any one person’s individual successes. So, if you are an owner and find yourself working late each evening, spending hours on the weekend troubleshooting problems, and taking time away from your family on vacations to handle a work crisis: your business is too owner dependent to succeed after your exit.
Melisa Silverman, Managing Partner at Founders Group, says that owner centralized businesses often lack well documented processes and strategies because the owner was the only one to manage specific aspects of the business. Without detailed business processes, a company not only is unprepared for market, but is missing out on valuable time-saving systems as well.
One of the easiest ways to build business value – and limit the amount of time you as an owner spend working outside of traditional work hours – is to decentralize yourself from the business. If you cannot trust your second in command to manage the business while you take a well-deserved vacation this summer, it is time to reevaluate your business processes. As an owner the best way to build value in your business is to build it as independent from your successes. Invest time and resources in training leaders in your business so they can run your business well after your exit.
Are you interested in learning more about Value Creation? Download our Value Creation Whitepaper today!
How to Transition from a 60-Hour Work Week to Retirement
According to Walking To Destiny, Baby Boomers are the inventors of the 60-Hour work week. Work didn’t stop just because you left the office, and you had no issue with working a bit from home if it meant the crisis was handled. Chris Snider says, “You have spent your lifetime navigating crisis, embracing reinvention, and with that, you have accomplished incredible things. You are successful. It’s no wonder that you would have a gut reaction to the word “exit”. Exit sounds like the end”.
Steve Parrish, Co-Director of the Retirement Income Center at The American College of Financial Services, says “The age 65 rule of thumb is also losing meaning because retirement has become more of a process than an event. For many, the days of a retirement party, a gold watch, and trip to the rocking chair are gone. Retirement may mean leaving your career job but picking up part-time work”.
If you exit your business at 60 or even 70, it is likely you will live another 20 to 30 years. And what is important is having a vision for what you are going to do with that time. Having a full and complete exit plan that considers your business, financial, and personal needs is crucial for a profitable business exit.
Find a Certified Exit Planning Advisor to assist in in building business value before your exit.
Summer CEPA Masterclass Sale!
We are celebrating the start of Summer by offering our July, newly added August, and September CEPA Masterclass Programs to you for only $1,900!
This is $1,000 off the retail price for CEPA Masterclass! Use code SUMMER at checkout to get this great deal on the education you need to create significant companies that build value for your business owners.
Enjoy your summer and earn your CEPA credential with our five-day virtual course. Only 4 hours of material a day so you can get back to enjoying a well-earned summer break!