Are you jeopardizing your business’s sale?
As a Certified Exit Planning Advisor, I've seen firsthand how business owners approach their most valuable asset—their business. Many believe that if they work hard, build a good company, and eventually focus on preparing for sale, they'll one day exit with a big payoff.
But here's the sobering truth:
According to the State of Owner Readiness Survey (SOOR), 99% of owners agreed in some form that having an exit strategy was “important to their future and the future of their business,” but when asked about planning:
- 80% had no written transition plan
- 50% had not planned at all
- 94% had no plans to do anything post-business.
And of those who do prepare, only 20 to 30% of businesses that go to market actually sell.
That means out of every 10 business owners, 9 never achieve the exit outcome they hoped for.
Why such dismal odds? Because owning a business isn't the same as owning a sellable business.
Two Owners, Different Outcomes
The difference between success and failure often comes down to intentional preparation. Let me share two real examples that illustrate this perfectly.
1. Built for Success
Consider a local daycare owner who built her business to not just run but thrive without her.
She trained a director to manage daily operations and documented repeatable processes that made the business run smoothly. She created diversified revenue streams: summer camps, before-and-after school care, shuttle services to local elementary schools, and STEAM enrichment programs.
When it came time to exit, she had choices. She could sell to a key employee and keep the legacy in the community. Private equity firms found her business attractive because of her well-run operations. She entertained multiple offers and negotiated the best outcome.
Because she prepared strategically, she sold on her terms and walked away with substantial profit. She's in the minority of business owners.
2. Built To Run, Not Last
Now consider a construction business owner who worked just as tirelessly. He ran the crew and built a reputation for quality homes.
But while his crew respected him, they relied on him for every decision. There were no key employees capable of running the company without him. No documented systems or repeatable processes. No strategy beyond finishing the next job.
When retirement arrived, his business was essentially him. Without him, there was no company to sell. His only option was liquidating trucks, tools, and equipment. Decades of blood, sweat, and tears ended with little more than a garage sale.
Preparing vs Hoping
Both owners worked hard and delivered value to their customers. Both started with the same exit goals. But only one turned that effort into an asset others wanted to buy.
This explains why so few businesses sell, even among owners who think they're "preparing." Real preparation doesn't mean:
- Cleaning up financials at the last minute
- Getting a valuation once and filing it away
- Hoping hard work alone will create value
True preparation means working intentionally on these fundamentals:
- Building processes that run without you
- Developing leaders who can take over
- Diversifying revenue streams to reduce risk
- Identifying, protecting, and growing business value
Without these elements, "preparation" is like having a gym membership without ever exercising. You're technically in the game, but you'll never see results.
Make My Business Sellable
If you're a business owner, ask yourself: Are you building a business that can thrive without you? Or are you creating a valuable job that dies when you retire?
The choice—and the outcome—is entirely in your hands.
At Harford Financial Group, we understand that your business is your biggest asset as much as it is your life's work. It deserves a strategic approach to preserve its value and your legacy. As a Certified Exit Planning Advisor (CEPA®), I specialize in helping business owners like yourself navigate this critical transition.
Schedule a consultationto discuss your exit planning strategy, or contact us to learn how our holistic approach can help you build a truly sellable business.