Recently I’ve provided methods for evaluating various exit and succession options, many business owners are able to identify that the sale of their business will not provide the cash they require to maintain the lifestyle they want in retirement. I’ve also described why business growth may not help you achieve your exit succession goals. So if business growth is not the answer, what is? Often the answer is pursuing personal wealth as a goal.
There are four alternatives that we recommend and implement with our clients other than or in addition to the sale of the business for developing owner wealth. These alternatives are not mutually exclusive. Often we build plans that utilize more than one of these and integrate them with ultimate sales of the businesses. They are: 1) shrinking the business, 2) managing for cash flow rather than growth, 3) accumulating owner wealth as you go, and 4) succession.
Over the next few weeks I’ll provide detailed explanations for each of these strategies. In the meantime, if you are a consultant do you have any other ideas to add to the list? If you are a business owner (or former business owner) that is employing or has employed one or more of the above alternatives, please share your experience in the comments.