Are You Waiting Too Long To Exit Your Business ? (Video)
Watch Platform 1 Director Mike Warmington share a short insight which illustrates the need to exit your business on your terms.
This successful business had imported and distributed a range of products for many years however they did have one key very profitable product that delivered a significant part of their profit . They had a longstanding relationship with this supplier and there was no indication this was going to end.
Despite several opportunities the owner was had delayed exiting for several years and was now in his 70’s without the energy and drive he used to have.
The owner received a request to tender from their key longstanding supplier. The owner was unprepared and hastily put together a submission .Unfortunately the supplier changed to a business that could distribute the product across multiple countries.
The value of the business was significantly diminished .Costs remained the same, so a major staff and property downsize was required to build it back to profitability and make it a marketable proposition. The owner however didn’t have the energy he used to have, which made this a difficult proposition to achieve. Exiting the business was their retirement fund.
This is not an unusual occurrence – In our business our major competitor is procrastination, and the lesson here is – don’t leave it too late and expose yourself to events that could well be beyond your control. You can rebound when you are younger, but it is increasingly harder if you wait too long.
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About the Author
Mike Warmington is a Director of Platform 1 NZ Ltd. Platform 1 finds people with capability and capital for SME business owners wanting to transition and sets up a structure and governance for this to succeed.