What is your exit strategy?

[Scott Rogers]

We are all getting older, what are you plans for the future?

How much longer do you see yourself cleaning carpets?

What do you plan on doing with the company when you are done? (give to kids, try to sell, have a staff run it, close the doors?)

If you get out of the industry, where do you plan on getting your future income?

What age do you plan on retiring?

 

[Jimmy L]

I plan on becoming a mime .
I had been a birthday clown in my younger years but at this stage of my life I want to become a mime.

For those who plan too far ahead there is the possibility of an early death.
So For now I will continue to beat on the drums all day and not worry about it.

 

[Brian L]

The men in my family die in their 40's or 50's (hereditary heart disease). I will be 51 next week, I will continue working and taking my vacations with my kids. I owe hardly anything on my house, my kids will get everything.



I am just happy to be alive.

 

[The Preacher]

diversify!!!

spend some $$$ on a well run biz in another industry, IOW, INVEST, but know who your investing in!

I'd like to find some smart young men to set up in this biz, like invest in equipment and customer service training and let them have a 60/40 - 70/30 split, but make it be their company so they have to run the biz.

 

[Jim Williams]

I will go out of the business the day my knarled 90 year old hands can no longer grip a wand and I keel over trying to use the slop jar beside my bed because it's too far to get to the bathroom.

HHHmmmm. Maybe I need to do some retirement planning.



Seriously, I am doing some thinking about wether or not to expand and turn the business into something that can run without me or either into something I can sell.

I figure I can at least supervise a business 30 more years, but 25 would be better. I also am a real estate investor and am part owner of a self storage facility. Those things are a cash cow.

 

[hogjowl]

I don't think it's any of your business.

 

[-JB-]

Same thing I always do, look for the red sign, and run my ass for the door,

 

[Jim Martin]

I am going down with the truck

Kinda like that Titanic thing

 

[Jack May]

Scott, that's all in my Primary Ain and Strategic Objectives!!!! and I ain't showing ya those!!!!

On a side note though, At 32 (next Tuesday) I'm 7 years into a 10 year plan. A recent slight set back has required me to go back fulltime on the tolls again instead of the 3-4 days a week I was doing but it's not insurmountable adn we'll get there in the end.

I have a couple of options (the above documents are not necessarily written in stone and evolve as the business grows)

I see myself in the industry long term but not necessarily in my current business as it now operates long term.

I have basic plans in place to slowly separate me from the part of the business that we'll possibly sell off at the 12-15 year mark which will leave me as an O/O for my remaining business. I don't necessarily see me staying that way and will possibly build that up to the stage where I can add 1-2 employees in that one while I focus on the parts that I NEED to like building and marketing of the business OR the parts that I want to... the stuff I like and employ someone else to manage for me.

At this stage I'm working at becoming totally debt free in both business and private BEFORE I look into investment anywhere else. If and when we sell part of the business, that's when I'll look at investing.

Don't know when I'll retire..... but I do plan on cutting back to possibly 4 day weeks at one stage through the plan so that I can have more family time as my 3 girls grow up etc

I've probably already said too much and you've probably got an appreciation of the above documents but I like to keep an oopen mind about them and review them and the goals etc each 6+ months.

Being a Christian as well, I also seek God's guidance in this as well.

John

 

[Charlie Lyman]

This is my exit from corporate life.

 

[Jack Zipper Zerkie]

Just turned 65 in Jan and never gave it any thought, as long as wanda lets me squeeze her valve I,ll keep cleaning as long as I can.
Jack Z. Cape Coral Fl.

 

[Becker]

Keep funding the IRA.

Hope for real estate to keep going up.

Check my mega million ticket.

 

[Doug Cox]

I'm ready to walk now, but the money keeps me in it. Been in this for 25 yrs. now and am just tiring of it. I just bought a new setup and thought it would keep me going for another five years but I don't think thats gonna happen. My life isn't dependant on my company, so I could do something different without a problem. I been wanting to start flipping houses but haven't found the right opportunity yet. Don't know whether I'll sell or walk. On second thought, I'll probably be here forever. LOL. It keeps me thin.

 

[Desk Jockey]

1...2...3.. I'm out of there!!!!

I need to clean more carpet actually my living room is trashed by my twins, I think they are actually pigs with no tails...Marty are you missing some piglets?

I'd like to make it out to see Luddy before he punches his ticket! 51-next week dam you're old!
A serious question-when you fart, does dust come out?
You big baby, you run and work out you'll be fine if you just get past Mikeyfest! :shock:

I don't know about leaving the industry...Jimmy offered me the job of driving his retirement bus around the country. I'm not sure if I can take all the smoke and the loose women, but I'm willing to give it a shot!

Don't plan on retiring, I'd just like them to pay me more and I'll promise to go to work less! :shock:

 

[steve frasier]

suicide

 

[Askal]

This year I am up to 20 weeks off. I would like to get to about 30 weeks off a year. Still have to work some to keep it in the direction I want but the day to day stuff is pretty well handled by an excellent, appreciated, and well paid staff. What I could sell it for just does not add up to what I can make owning and part time managing it. I l love being in business and watching it grow. IRA's and property are good I think but not so much in the short term. We did a remodle/flip but I don't think it is going to pan out as well as I had hoped. My Dad (great guy) spent his life saving and amassed a considerable about of $ but then didn't live too long to enjoy it so I'm taking mine now. So, if I ahve a little less in my golden years I will still eat and live indoors.
Al

 

[Askal]

This year I am up to 20 weeks off. I would like to get to about 30 weeks off a year. Still have to work some to keep it in the direction I want but the day to day stuff is pretty well handled by an excellent, appreciated, and well paid staff. What I could sell it for just does not add up to what I can make owning and part time managing it. I l love being in business and watching it grow. IRA's and property are good I think but not so much in the short term. We did a remodel/flip but I don't think it is going to pan out as well as I had hoped. My Dad (great guy) spent his life saving and amassed a considerable about of $ but then didn't live too long to enjoy it so I'm taking mine now. So, if I have a little less in my golden years I will still eat and live indoors.
Al

 

[Guest]

I had planned on leaving the biz this year to go into Real Estate investing full time,but now the market is too soft. I will stay a bit longer.

We currently have 4 houses,and are building our dream home on 9.5 acres right now.
I plan on selling the biz in a few years and financing it long term.
Wife has a FAT 401k(she's been VERY successful).
We have 1500 shares of Newell/Rubbermaid stock that's doing well.

I turned 47 last week.
No complaints.

 

[Steve Toburen]

A good question, Scott. As you can see from the replies above everyone has a different solution taking into account their personal goals, lifestyle and market. The important thing is to both ask it and take action on your answer.

It seems that the big fork in the path to success is deciding between being an owner/operator or "going for it" and building a big operation. Either way can work. The problem is when we wind up on "the road in-between". What I call being "too big but too small". (I don't know if I can use the "I-word" on this board but my ICS column on this subject several years ago was the most popular I have ever written. If you want an e-mailed copy just write me at stoburen@homefrontsuccess.com) A few thoughts ...

IF you opt for the owner/operator route (and who can blame you with all the headaches of employees?) just bear in mind that the sale of your small business will not provide completely for your comfy retirement. So make alternative arrangements:

1. Fund the heck out of your IRA. (Actually this applies to everyone, big or small.)
2. Right now, today, immediately start religously siphoning off 10% of your gross earnings and put them into a personal investment fund. Most people recommend a variety of low-cost index funds.
3. I would seriously look at investment rental real estate. (If you can stand dealing with tenants.) Real estate has been veddy, veddy good to me. And obviously buy a home, don't rent.
4. Do you have a hobby that can be converted into a part time, retirement business for supplementary cash flow? The old saying, "Find a job you love and you will never work another day in your life" can apply to retirement. I know it does for me with my very part time relationship with Jon-Don.

Or of course you can "get big" in business. (Even so, it wouldn't be a bad idea to do all of the above too! There is no virtue in poverty!) If you do choose this route you will need to make the business run without YOU. Those who don't do this condemn themselves to a miserable, stressed out life and very likely "early retirement" by dying young!

As entrepreneurs we have a wonderful opportunity. The ability to choose our future. Don't blow it by forgetting to focus on Scott's great question: "What is your exit strategy"? For those who do not have it I have a 68 page Special Report on this subject. It is called "Cleaning Up: Building Personal Wealth in the Cleaning Industry". (Actually it is 63 pages with a five page "info-mercial for SFS tacked on to the end. But you don't have to read this part!) Anyway, just write me at stoburen@homefrontsuccess.com for your e-mailed copy.

Steve Toburen CR
Director of Training
Jon-Don's Strategies for Success

PS Even though my Special Report has several chapters on preparing your business for it's sale (and this is the route I took almost sixteen years ago) I will also say that IF you can do it both emotionally and from a management standpoint Askal's approach above has much to recommend it.

Simply put, your small service business running as a "cash cow" with others managing it is always worth more than selling it. Of course, this means that you will have to get down in the trenches and develop both the Business Infrastructure AND the people to replace you as the owner. Few small business owners have the fire in the belly or the management vision to accomplish this task.

Thanks for reading,
Steve
(At the current age of 54 I've been happily retired now for 16 years. I am VERY grateful to this industry for giving me the "gift of freedom" while Sioux and I are young enough to enjoy it.)

 

[Matt King]

Rental property. I'll probably clean on the side for years to come, just not full time anymore... Maybe sell some pto units to keep me busy.

 

[Rex Tyus]

This is my exit from corporate life.

DITTO!