28 : WELLBEING

wellbeing

When is the right time

In this special feature, Business Connect has asked Vickie Elson-Hood from the Spring Top Group, and Susan Leigh from Lifestyle Therapy, to write about two very different situations when it’s time to step away from your business.

The most common question I get asked, apart from now much is my business worth, is when is the right time to sell my business?

The simple answer to this is – ‘when you don’t need to’.

When selling your business, choice is absolutely key to ensuring you don’t experience any post deal regrets or fall victim to sellers remorse which sadly many business owners do. Apart from financial wealth, I would encourage every business owner considering an exit to consider what are the other elements of selling your business that are important to you? For many it’s these socio- emotional elements that will truly reflect wealth.

What is most important to you post your exit?

Continuation of your legacy? Employee protection? Development opportunities? Business location? Customer relationships? Supplier relationships? The answers to these amongst others will all contribute to ensuring your ‘socio-emotional wealth’ is as healthy as your bank balance post the right transaction, thus aiding in avoiding the all too often experienced sellers remorse.

Make sure you look after yourself too - what are you going to do in the future?

What will be your purpose if not the owner of ‘xyz Ltd’.

It’s ok not to know the answer to this, however I would encourage you to give the answer some considered thought - the sense of loss for some business owners upon selling their business can be comparable to that of losing a loved one and the associated grief. Returning to my first point of selling your business when you don’t need to, don’t wait for a competitor to approach you to make an offer to buy your business, I can guarantee that they won’t fulfil your requirements with the various elements of wealth which will leave you feeling accomplished. The best buyers will be complimentary in nature and will add value to your current business, and vice versa. This ‘synergistic fit’ carries value and should be reflected in the transaction.

Another downside to responding to an approach is the lack of time you’ll have to prepare your business.

Preparation. preparation. Preparation.

Make sure your business will stand up to the scrutiny that Due Diligence will provide. Poorly drafted, or even lack of contracts for example, are likely to open up the opportunity for the buyer to use DD as a price chipping exercise.

DD is about proving facts, not renegotiating the deal. Plan for the future; Presenting future opportunities to any buyer will demonstrate greater value in the business, a business with growth opportunities will be more attractive to any buyer than a business with little growth achievable. Be pro-active about exploring the market to find the best buyer for the business. Remember if you wait to be approached, you’re likely to be unprepared, have no other options and certainly won’t be able to compare their offer with any other possibilities a wider market approach would offer. My advice to anyone looking to sell their business without any regret, is to ensure you are in control of the entire process, prepare, research, be pro-active and concentrate on the future potential of the business.

If you do this, you will be less likely to feel bereft post any transaction, and your ‘socio-emotional wealth’ will be abounded.

Vickie Elson-Hood

Spring Top Group springtopgroup.com

right time to step away from your business?

“My advice - is that if someone wants to start a company they should bear in mind that the most likely outcome is that it’s not going to work and they should only do it if they are really compelled to do it, you know, then you do it, even though the risk of failure is high.” These words, spoken by Elon Musk on ‘The Elon Musk Show’, BBC2, October 2022. The statistics are readily available, revealing that 80% of entrepreneurs who start businesses fail within the first eighteen months and more than 500,000 small businesses close every year. And yet still we persevere, wanting to work for ourselves, be our own boss, achieve something special that we’ve built through our own endeavours.

At what point should we decide to throw in the towel and say we need to close our business?

“If you are working on something that you really care about, you don’t have to be pushed. The vision pulls you.” — Steve Jobs. And that’s at the heart of any successful business, having the passion and enthusiasm to see beyond setbacks and obstacles, consistently working towards the bigger picture to achieve those goals.

What changes those business dreams into a nightmare?

At the outset there’s passion for a new business, a desire to go to work each day. But if that passion dissipates, perhaps after too many challenges, paying too big a price personally, professionally or financially, every hurdle can feel insurmountable, every rejection taken personally and eventually something has to give. Without drive and energy surely it’s time to quit. The ultimate goal of any business is to provide a livelihood. New businesses often have plenty of ideas but fall down on their execution, lacking consistent, focussed effort. A business coach may introduce goals and accountability, but enough money has to be generated to cover hours being undertaken and to pay overheads.

If you’ve no market for your goods or services and are effectively trying to sell widgets in a widget-free world, it’s time to acknowledge that you need to modify, adjust and adapt your business direction if you want to survive.

Any business should regularly monitor their markets, figures and keep an eye on the competition, so becoming aware of any changes that are being implemented. Unless you’ve cornered a niche market it’s important to be offering something viable to as wide an audience as possible. Enthusiasm will only take you so far. If profits have been consistently falling to a concerning, unsustainable level it justifies a thorough audit, especially if business looks good on paper. Could you be being stolen from; aggrieved staff may justify their actions, feeling they’re entitled to take from supplies. Are inefficiencies or outdated equipment or methods hi-jacking your chances of being competitive and profitable? Are you hiring expensive staff to perform routine tasks which could be undertaken by someone less expensive? What about overtime, does that need investigating and are staff trained well enough to avoid making expensive mistakes?

Cash flow is often the biggest problem, particularly with new businesses. Sometimes the order book is full but charging a fair price or getting paid provides a major headache. Another cash infusion, the use of a handy credit card or bank loan, factoring outstanding invoices or involving an interested investor may be enough to weather the storm, but there must come a point where any emotional investment has to be stepped away from and sensible business decisions are taken.

Is it time to start trading differently, maybe invest in online marketing, where you specifically target your ideal customer?

It may be that your personal circumstances have changed and you’re no longer as invested in nurturing your business as you once were. Your health may have taken a downturn, causing your priorities to be modified, personal relationships may have suffered due to work-related stress, your financial aspirations may have changed as children finished their education and moved away, or your inclination to spend as much time and effort at work has diminished as your drive to earn money has been replaced by other hobbies and interests.

Or maybe you’re looking for a different work environment, with less working from home and more mixing and meeting with others, want personal connections or to earn a regular salary and associated perks. Could this be due to exhaustion and the need for a holiday, or is it time to delegate or hire more staff? Some people have an exit strategy from even the earliest days of starting their business. They’ve formulated plans to sell, bequeath or franchise their way into profitable early retirement. They face the challenge of stepping back from a successful business and letting someone else make major policy decisions about a business they’ve nurtured from scratch. But in a business that’s struggling, stepping aside can be a wrench. Would it be possible for staff or management to buy or form a co-operative, or sell, and remain in the business as a consultant?

It can be tempting to persevere and continue with a struggling company, saying ‘just another loan’, ’a few more months’, but a successful gambler recognises the skill in knowing when to cut your losses and walk away. This isn’t failure, but rather a major learning experience, giving insight into your customers, skills and contacts for future reference.

Susan Leigh MNCH (ACC) For further information please call: 0161 928 7880 or visit

www.lifestyletherapy.net

More from Susan on next page

wellbeing

How do you do so much?

I’m sure we’ve all had occasions when we’ve looked on and wondered how someone’s able to fit in as much as they do. Whilst we’re still pondering how to clear our inbox, fit in an important meeting or shop for tonight’s dinner, they may have been to the gym, ordered the weekly food shop, made several important calls, volunteered at a local charity and completed an important piece of work! How do they do so much?

Being organised is the key to

getting things done. Without organisation things can become too random, dipping in and out of tasks with very little focus or planning. Lists can be an efficient way of introducing order and control, so enabling outstanding matters to be sorted by degree of urgency, as well as the added satisfaction of being ticked off when completed.

Some things are too big or

complicated to tackle in one go. And also, some contribution or expertise may be required from a third-party. Efficiency often requires being focussed and confident enough to pass tasks quickly on so that the next person can start on their input. Be sure to monitor where things are up to and how individual tasks are progressing.

Delegating is a valuable tool in

a busy life. Being precious and insisting on doing everything oneself may feel like a positive way to keep control, but not everything needs to be jealously guarded. Let others help, share in the story and perhaps they’ll even come up with new, improved ways of working. It motivates everyone when they’re included as part of the team and subsequently given credit for their contribution.

Hire help. Certain routine or mundane tasks like ironing, cleaning and gardening may be worth outsourcing. It could be a valuable investment to pay money and free up your time for other things. Equally, tasks outside your area of expertise may benefit from being done by someone else, rather than having you spend hours agonising over your accounts, admin or design work. Something you dedicate ages to may take a professional a fraction of the time and be done much better.

Don’t wait for everything to be

perfect before you start. There’s no need to rehearse every possible scenario or set of circumstances in advance.

Often things come together well enough once you’ve begun. Allow your mindset to be flexible, receptive to the different possibilities and enjoy where they take you. This can lead to interesting detours, unless you’re required to follow very specific criteria.

Double up your arrangements

where you can. Why not combine some areas of your life? Eating out, seeing a show or concert and inviting several of your friends along, may maximise your time and create an almost party-like atmosphere amongst your various friends.

Business networking combined with a game of golf or a run can include exercise and business, as does perhaps taking a walk or enjoying a hobby or class with family or friends. Learn to say ‘no’ appropriately. When we work for ourselves or are in a new situation, we’re often keen to fit in and be accepted. It can be tempting to say ‘yes’ and agree to everything in a bid to prove we’re enthusiastic, competent and obliging. But, sometimes we need to review what we’re already committed to and ensure that we do a good job. Otherwise we may run ourselves ragged, trying to accommodate every request and enquiry, potentially damaging our reputation and our health. FOMO, fear of missing out, of having something to prove, of trying to be indispensable, not wanting to let go of the reins and aiming to fill every second with meaningful activity can all create their own stress.

But equally, there are those people who are eager to try everything that’s on offer, every option that’s on the menu. It’s great to be enthusiastic and try new things, but it’s also important to take time to rest, savour and make the best choices for you. Enjoy doing each thing for its own sake, being able to dedicate your whole, undivided attention.

Focus on today, knowing that there’s always another day when you can move onto the next positive step on your list.

Susan Leigh MNCH (ACC)

Take regular breaks and recharge. A twenty-minute break allows time to sit and eat a healthy snack, hydrate or maybe go outside to catch some fresh air. Many people find that afterwards they return to work with a clearer mind and renewed enthusiasm for the job in hand.

Remember to give yourself credit

for each achievement. Rather than stoically working your way through your list, pause intermittently to value every stage of the journey, each completed task and appreciate what you’ve done. And might it be relevant to sometimes ask yourself why you do so much, why you allow your time to be so fully occupied.

Some people are constantly busy because they need to be in control and are loathe to pass on work to others for fear of being cut out of the loop, of it being discovered that others do a better job or of having their mistakes and shortcomings revealed. South Manchester counsellor, hypnotherapist, relationship counsellor, writer and media contributor offers help with relationship issues, stress management, assertiveness and confidence. She works with individual clients, couples and provides corporate workshops and support. She’s author of 3 books, ‘Dealing with Stress, Managing its Impact’, ‘101 Days of Inspiration #tipoftheday’ and ‘Dealing with Death, Coping with the Pain’, all on Amazon and with easy to read sections, tips and ideas to help you feel more positive about your life. To order a copy or for more information, help and free articles visit

www.lifestyletherapy.net

For more articles, information or to make contact please call 0161 928 7880 or visit

www.lifestyletherapy.net