Christine Nicholson, an exit and succession expert, shares insights on the emotional and practical aspects of business ownership and exit planning. Key takeaways include the importance of understanding your business's value and the risks associated with being overly attached to it. Nicholson emphasises that 80% of businesses are unsellable due to their reliance on the owner, highlighting the need for effective delegation and team empowerment. She discusses the significance of planning for an exit from the start and maintaining a balance between wealth, health, and mental well-being. The conversation also touches on the realities of earnouts in acquisitions and the necessity of reading legal documents carefully. Ultimately, Nicholson encourages listeners to invest in themselves by prioritszing personal fulfillment and purpose beyond their businesses.
KEY TAKEAWAYS
Emotional Attachment to Business: Many business owners struggle to detach their identity from their business, which can hinder their ability to sell it effectively. Recognising this emotional connection is crucial for a successful exit strategy.
Key Man Risk: A significant portion of businesses are unsellable because they rely too heavily on the owner. To mitigate key man risk, business owners should empower their teams and distribute responsibilities, allowing the business to operate independently of any single individual.
Importance of Exit Planning: The best time to start planning for an exit is during the initial stages of business development. Business owners should consider their exit strategy from the outset to ensure they are prepared for future transitions.
Understanding Business Value: Knowing the true value of a business is essential for planning a successful exit. If a business cannot survive without its owner, it is likely worth very little. Business owners should seek professional help to assess their business's value accurately.
Balancing Wealth, Health, and Well-being: Achieving a balance between wealth, health, and mental well-being is vital for business owners. Prioritising these aspects can lead to a more fulfilling life and better decision-making in both personal and professional realms.
BEST MOMENTS
"About 80% of businesses are unsellable because they rely too much on the business owner. This is a universal thing because it's really down to the human ego."
"The hardest part of the journey is the seven inches between your ears."
"If your business can't survive without you, it is worth big fat zero."
"The more your business needs you, the less it is worth."
"You have the business that you deserve. So go and give yourself the time freedom that you promised yourself."
ABOUT THE GUEST
https://www.linkedin.com/in/christine-nicholson/
christinenicholson.co.uk
www.getexitready.co.uk
ABOUT THE HOSTS
Serial entrepreneurs Fredrik, Charlie and Ivan Sandvall love sharing ideas and interviewing world-class entrepreneurs and influences. Invest In You is about investments, entrepreneurs, personal development and doing fun things. They hope to ensure you to take action, helping others and yourself, plus enjoying the journey we call life.
CONTACT METHOD
Fredrik Sandvall
www.linkedin.com/in/sandvall/
https://www.facebook.com/FredrikinLondon/
Charlie Sandvall
LI: https://www.linkedin.com/in/csandvall/
Youtube Channel: https://youtube.com/c/Sandvall
Ivan Sandvall
Instagram @ivansandvall
