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Business Owners Delaying Retirement

According to a WSJ article, more business owners are delaying retirement because they can’t sell their companies for what they need to comfortably retire. I ask you, when did that become the valuation criteria?

I say over and over (and perhaps it is a good thing that I am brown skinned and have a summer tan so you can’t see the blue in my face!), you MUST create value that others appreciate in order to sell your business for a good price. How does one create value, you ask. By installing some professional management (i.e., a CEO or COO and CFO or Controller and a VP of Sales) for starters. If you have all the relationships and run the company without help at the high levels, I am just buying a job with the risk of you (the seller) becoming my greatest competitor!!

If you transfer the relationships to the head of sales, the risk drops. Or if your customers are locked up under 3-5 year contracts. Many of the owners in this article were working 12 – 16 hour days and/or hadn’t taken a vacation in years. Come on now. With that description, would you want to buy the company? If you’ve run it for 15-20 years and that’s where you are, what makes you think someone else can come in and do better? This is why the companies are not selling. Make the fundamentals more attractive and begin revamping your business into a salable asset, and it will sell. It may take a few years to shift it all, but it will be well worth it.

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About Tiffany C. Wright

Hi! I,Tiffany C. Wright, am the author of the ebook, "Help! I Need Money for My Business Now!!" and the book "Solving the Capital Equation: Financing Solutions for Small Businesses", available on Amazon. I am the president of Toca Family Business Services, a short-term & project-based interim management & strategic and financial advisory firm, located in Atlanta, Georgia. In the past five years I've helped small and medium companies restructure and obtain over $31 Million in financing and a similar amount in purchase orders and contracts. I have an MBA in Finance and Entrepreneurial Management from the Wharton School of Business at the University of Pennsylvania and a B.S. in Industrial and Systems Engineering from The Ohio State University. Personal: I enjoy investing. I am a prodigious reader of everything from business books, magazines, and newspapers to horror and popular fiction. I read 4-6 books per month. I also love to travel. I've been to 33 countries on 5 continents and lived in Japan for 2.5 years and aim for a foreign locale twice a year. I am also an athlete and run track on the Master's Circuit. The highlight was placing 7th in my age group in the 2007 World Master's Track and Field Championships in Italy.

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The Resourceful CEO, Tiffany C. Wright

the president of Toca Family Business Services, a strategic and financial advisory firm which provides short-term & project-based C-level management. She is the author of Solving the Financial Equation: Financing Solutions for Small Businesses, available on Amazon.

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