Uncovering the Reasons Behind Business Owners Delaying Their Exit
As a business owner, the thought of passing on your business to someone else can be daunting and overwhelming.
However, staying in the business forever isn’t a viable option either. So, why do so many business owners delay their exit? Here are some reasons:
✔️ Emotional Attachment
Some business owners become emotionally attached to their business and find it hard to let go. It’s understandable, considering that their personal identity has merged with their ownership, and their business is their life’s work.
✔️ ‘Die at the Desk’ Syndrome
Some owners actively want to work until they drop. However, it’s not always in the interests of the owner or the business to carry on running the company forever. Countless routes can help you stay fulfilled beyond exiting your business.
✔️ Financial Security
Many SME owners rely on their business as their primary source of income and are hesitant to sell until they’re financially secure. With the right plan and people in place, it’s possible to exit and achieve ongoing financial security.
✔️ Lack of Succession Planning
Failure to build a clear and effective succession plan makes it more difficult to find a suitable buyer or buyout at an acceptable valuation.
✔️ Business Performance
Owners might delay their exit if the business is not performing well. It’s essential to avoid descending into a lengthy ‘wait and see’ mode without a clear view of how you will secure a successful exit — and at the right valuation.
If you’re a business owner, it’s essential to identify and address these issues to ensure a smooth and successful exit. Remember, proper planning is key to achieving the best outcome for both you and your business.
