About Hank James
I’ve been helping middle market business owners sell their businesses for about 25 years and have completed over 100 successful transactions.
Most of those owners would have had an even more successful transaction had they done additional advance planning to integrate their business planning and their personal planning.
My epiphany (and the founding of WealthTrax, Inc.) came when working on a project with a client. The business owner client asked me, as they all do—“What’s my business worth?” The owner’s financial advisor spoke up, “That’s the wrong question. The question you should be asking is, ‘Can I afford to sell my business?’”
This question is the first question of exit strategy planning. The word “afford” elicits two more questions: What is the value of all your income producing assets—not just the business? And: What are your lifestyle needs and goals? In other words, what will you be spending to live in your chosen lifestyle; what will you need for taxes and what do you plan to give away?
Each individual is different. I’ve had clients who lived very comfortably on $4,000 per month and I’ve had clients who struggled to survive on $40,000 per month. It takes an individually designed plan.
So how does one get the answer to the first question?
You have to:
|-|| Decide on your lifestyle goals.
|-|| Determine the value of your business now and the value you will need at exit time.
|-|| Preserve, protect and promote the value of your business—your engine of wealth.
|-|| Learn the process for converting your business value to cash.
|-|| Learn the process for selling for a note to children, employees.
You also have to ask yourself a second question, “Can I afford to die at midnight tonight?” To answer this question, you have to:
|-|| Plan for contingencies—preparing the business to survive your sudden departure—or your long-term departure.
|-|| Plan for the preservation of your wealth—integration of your estate plan with your business planning, including periodic checkups.
When you as a business owner can answer “Yes” on both exit planning questions (“Can I afford to sell my business?” and “Can I afford to die at midnight tonight?”), you are ready to leave your business in style!
About WealthTrax, Inc.
WealthTrax, Inc. focuses on exit strategy planning for owners of mid-size businesses looking to retire or transition out of their business. The company is dedicated to educating these owners on the principles of exit strategy planning and leading them through a process to develop their plan and successfully execute their plan.
WealthTrax helps owners execute their exit plan, whether it is transferring to children or employees or selling to third party outsiders. The WealthTrax systematic approach puts them on track to retire or transition out in style.