Not all businesses can work the way you want! But then again, not every venture in your life can be a success. The key to preventing large-scale disappointment is to make the most of adverse situations. A business may crash due to various reasons, starting from financial crunches to the lack of proper administration. Selling your business at the right time can help mend the situation to a great extent. If you can sell your business before a crash, you will be able to recoup the losses and start again, if possible. But it can be tricky to know the right time to sell your company. Sometimes, a temporary down period can be easily overcome, while in other times, you may not even prevent a sudden crash, if you do not identify the red flags on time.

In this post, we are going to discuss this issue, as well as provide you with effective suggestions to identify the best time to sell your business and move ahead. But before that, you need to know a few things related to this.

Selling Your Business Is Not Equivalent To Failure

According to experts, less than 5% of business owners even think about the selling part while starting up. They consider it to be a last-minute decision, if the business does not do as well as expected. It is not the right way. You should keep a plan in place, when you begin, so that there is no delay in taking such decisions. Be comfortable while speaking about selling the company, so that you may gain the capital and do something better. It is not equivalent to failure, as many business owners may think.

Yes, for family businesses, it can be a difficult decision, as legacy longevity comes into question. They may want the business to grow and then their children and grandchildren to feed off it. As a result, any discussions or conversations about selling can take a backseat. However, what these people do not think about is, sometimes, selling a poorly-structured business can provide them with the capital that they may invest in something better, more competitive, and upgraded. Selling an old business that is doing well in the market can allow them to try something newer with a greater potential to capture the market.

Hence, business owners should not think about selling as their last option. On the contrary, they can think about selling when the business is at its peak so that they can get maximum value for it.

Think About Selling Before You Sell

As mentioned just above, you should have a selling plan ready before you even decide to sell your business. It is best to seek the help of a professional accountant or financial advisor to know where your business stands at any point in time. You can go for a yearly analysis to decide on the best time to sell your company. Unlike most business owners, who decide to sell their business when it is tanking or they do not have any passion left to run the company, you need to sell your business when it is somewhat at its peak. Try to start a selling conversation 24-36 months in advance, so that when the time comes, you can sell it off without difficulty.

Why Should You Consider Selling Your Business?

You may ask, why sell at all? If you have long-term plans for your business, you may not want to think about the selling part. However, there are certain situations when selling your business may be the best option you have. For example, you may be facing financial issues or lose the passion to do business altogether. Then there may also be personal situations, where you are unable to give enough time to your family because of the business. Selling a business need not only be a result of downtimes or problems in the market. It may be going pretty well but still invite problems in your personal or family life. For example, you are so engrossed in growing the business that you fail to spend time with your family or kids. Further, you may not even be making too much money from the business and cling to it only because of your passion. Well, in such times, selling it for a larger capital can actually help you.

In the case of financial and performance issues, failing to decide to let go at the right time may cause you to sink along with the business. Then there are situations when nothing is going according to the expectations of the business owner. The business may be tanking, as the owner may also not be in a situation to fight for it. He must really feel like letting go. You need to prepare your business for such adverse situations that do not follow any pattern. Therefore, selling should be in your mind always, not as a way to get out of your business but to make the most of critical situations and come out a winner.

Take the COVID situation as an example, many business owners failed to ride out the storm and ended up losing their businesses. Some others lost their passion to run the business. Very few of them have had a financial plan in place to get the most out of the situation. If they had, things would not have been this bad. That is the reason why financial planning should be on every businessperson’s priority discussion list. One should consider situations when the entire market crashes and create plans accordingly to help keep the business afloat or close it on time and move on. Professional advice is indispensable in such matters.

Disputes In The Family

This is another instance when family businesses face critical times. The owner may have built the business for the next generations, but what if they do not want it? There may arise disputes in the family, when some members want to sell the business off, take their shares and start something of their own. Others may wish to carry on. You may end up selling the company to settle the dispute even if it may not even be on your mind. So, why not stay prepared in advance for such unfavorable conditions? It does not take much to seek the help of a professional financial advisor and keep a plan up your sleeve.

Retirement And Other Things

So, you have built a business and grown it with your sweat and blood, but now, no one in your family is interested in taking it over. What do you do then? You sell it, of course! But, what about the value of your business? You can never know the right value of a business, as it can change from time to time, depending on the way it’s run and the market.

There can always be an investor, who may run your business better and earn more profits than you ever did. Why not make the most of that opportunity then? With an open mind, a futuristic vision, and a proper plan, you can always be on the gaining side, when it comes to selling your business. It is best to have a number in your head for selling, irrespective of the condition of the business. You can vouch for that number when it is time to sell. To prevent understating or overstating that number, you can take the help of a chartered business valuator, who will be aware of the potential of your business in terms of ROI and other benefits.

What To Do With The Money After Selling Your Business

Early retirement may not be everyone’s cup of tea. Especially the go-getter. Well, they can. And they can use that money to build something new. They can start a social campaign, or be a philanthropist, whatever they wish. The need for another plan of ‘what to do after’ comes into play here, and one must think of it in advance as well. The owner should not go into depression after selling the business as he did not have a plan ready. Sometimes, it is this fear of the unknown that prevents business owners from selling their company, even if it is the right time. The professional advisors can help here. When you are discussing your selling plan with them, make sure that you start a conversation about what to do after.

If you have a family business, you should also discuss this with other members, who may have contributed to the business or invested shares in it. Such preplanning will prevent questions like, “Why wasn’t I involved in this?” or “Why didn’t you consider my suggestion?” Having a talk with the key members in the company or family, people who might have a say in it, will also help in the decision. It is recommended to keep an open channel of communication always, so that everyone gets to speak their mind regarding the future.

Closing Lines

A business is not just about numbers but many things beyond that. One should consider the emotional aspects as well, especially in the case of family businesses. Open discussions with your family members, partners, and shareholders before you take the crucial decision. It will increase your chances of getting their support in your future endeavors. Also, do not forget to keep your professional advisors in the loop, as there is nothing worse than carrying out a plan with no research or analysis to back it.

There is not a shred of doubt that the challenges of running a family business are many as we talked about in our previous article. But one shouldn’t ignore the fact that beyond these challenges is a series of benefits that one can enjoy being a part of a family business.

Besides monetary benefits, you can establish your ideas in the world and create an heirloom in the form of a successful business. It will support your family for generations to come. Further, if your business accomplishes its goals of adding value to society, it will always show your family in a positive, inspiring light. And being a part of a family business makes it easier, as all members of a family tend to grow up with the same values and wisdom. They share similar (if not the same) ideas that help propel the business and help make the world a better place.

For example, if your family cherishes the idea of a green environment, the chances are high that the business will focus on that too. And the goals will be more real and achievable than in one, where the leaders only speak but do nothing to execute those ideas in real life. You are also more likely to get people with similar mentalities in a family than in some company, where each member of the board has different, conflicting values. Even the employees will get clarity on their beliefs and actions, what they should or shouldn't do, in a company run by the members of the same family. There will probably be no confusion regarding their actions and decisions.

There are several other benefits of being a part of a family business. Let us now talk about those in detail.

The employees become a part of the family too

In a family-owned business, the employees can be less frustrated and confused than in other companies. This is mainly because members of a family tend to have the same values (if not beliefs), visions, and goals. That makes it easier for the employees to understand their leaders better and relax. For example, if philanthropy runs in the family, the business will reflect those values too. They may never make decisions that could harm a life, or humanity at large. If the family is into animal welfare, the employees may even be allowed to bring their pets to the office. It will create a positive and high-spirited ambiance for everyone to work and grow. In other words, family-run businesses have leaders, who tend to treat their employees as a part of the family and not merely as workers. It motivates them not only to do better in their respective fields but also to treat each other with mutual trust and respect.

Decisions don’t take much time in family business

Unlike in companies having people from different backgrounds coming together to achieve the same goal, family-run businesses have people belonging to the same background as leaders. It helps ease conflicts and hastens the decision-making process. For instance, if you are running a boutique with your sibling, and you want to introduce a new clothing line, the decision doesn’t have to wait. You can discuss it with him/her casually while having dinner or playing tennis and bingo! The next day, you can just contact the right people and take your idea forward. Even if your sibling has some issues, you can take your time to convince him, but it will still be faster than holding repeated board meetings and yet, reaching nowhere. It’s because, most of the time, the members of the same family are quite aligned in their thought processes. The conflicts are not too difficult to resolve, and convincing others of your ideas doesn’t take as much time as in non-family businesses.

The channel of communication is always open

In a family-run business, you can always have clear and hassle-free communication with your fellow members. Despite having different views and interests, you can always communicate your ideas freely with less fear of getting judged. It’s like sharing your views about a cricket match or a movie, unlike a non-family business, where everything needs to maintain a level of professionalism. This is because, in a family business, everyone has the best interests of the family in mind. If there is a decision to be made or a new risk to be taken, it should benefit the family. Unlike a non-family business, where people may have their individual interests in mind, here, the family is tied together with a similar mission, vision, and goals.

Resource pooling helps grow the family business

It’s easier to pool resources from fellow members, relatives, friends, and others in a family-run business. You can create extended families with people of the same community and pool resources to achieve a common goal. Not only do you share the same roof but also similar views and interests that align to help grow the business. Then again, when the interests of the family reign over the interests of an individual, growth can be faster and less risky. The resources are invested to achieve common goals and ambitions that ultimately benefit the business. When there is a crisis, the family businesses tend to suffer less because of this. The members of the family work shoulder-to-shoulder to overcome the challenges and ride out the storm.

Even in the face of a personal crisis, one can easily get any kind of financial or other help from the board. You cannot expect that level of comfort and understanding in a non-family business. For example, if you need money for enrolling in a course, you can borrow it from your parents or siblings. But can you expect that from a board member in a non-family business? To be honest, the board members, no matter how cool, are your professional acquaintances. They have no interest in your life. Harsh, but true!

The family business can be passed on

A family business is a legacy that lives on even when the founding members are no more. It teaches you a lot. While some families inherit the business and decide to sell it, some others maintain the tradition and keep running it for the sake of old memories and their future generations. Neither is wrong, as there is no right or wrong way about it if you are thinking about the welfare of the family. And that is the best thing about a family business. It can support you, uplift you and help you in need. It’s more valuable than a piece of jewelry, say a diamond necklace or an antique ring, treated as a family heirloom. The business grows, like a tree that keeps giving you food and shade for generations.

The children can learn a lot. Their emotional intelligence depends on the family environment, while their knowledge of the practical world and how it works can be gained from the business that the family runs. They can learn all about marketing, negotiating, and most importantly, selling, from a young age. The key benefit of an entrepreneurial family lies in the way their children are brought up. They tend to know a lot more about the commercial world and the way it functions than other children of their age. It also gives you a chance to engage with your kids better as they grow. If there is nothing else, you can train them in business from a tender age, so that they taste success faster.

You are always full of ideas

Most family businesses are run by real-life ideas to offer practical solutions to day-to-day problems. The members of an entrepreneurial family always seem to look for solutions to expand the services or add a new branch to their business. And they do that often. For example, you stay too busy to look after your children, and then you think of day-care service. Instead of finding one for the children, you can just introduce a new branch to your business, so that you can earn both socially and commercially. Your problems will be solved, and you will also get a chance to expand your business. And this happens to most entrepreneurial families out there. Any block on their path, a small stone or a boulder, they seem to just turn it into a profitable business idea.

The family spirit is everywhere

When there is a crisis, one of the first steps that non-family businesses take is cross-cutting. They cut down the number of employees or pay them down to manage the limited resources. Such a thing is rare in a family business. Even if it is one employee, the owners tend to think a lot before firing someone. This is because the family spirit is always high, and the members are well-aware of the contribution of everyone towards the business. They start from scratch and work as a troop to grow the business. So, they rarely throw anyone off board during a storm.

To sum up, a family business teaches us some of the greatest values in life. It helps us learn the ways of the world, teaches us to be compassionate, and enhances relationships. If you are in a family business, consider it good luck. You can reach the higher rungs of success with love and mutual respect.

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Growing up in a family business is quite a privilege, especially when you think about the economic challenges of putting up a 9-5 job. But running it isn’t easier either. Family businesses indeed have a hell of a lot of amazing benefits, but in this post, we are going to talk about the challenges that intrigue us more. This is because, when you are prepared for the worst of what might happen to you, you are ready to take the plunge without fearing the consequences.

So, there are several challenges doing business with your family members, whether it’s your siblings, parents, or even your kids. Here we will discuss some common ones so that you can make preparations accordingly. We will create hypothetical situations while explaining every potential challenge so that you understand better. It will help reduce the anxiety regarding any issues while running a business with your family members.

Let’s dive right in then!

Conflicting views

This is the first major challenge that comes to our mind while talking about a family business. No two people in the world can have the same views regarding a situation, even if they belong to the same family. For example, if you run a business with your brother, and there is a situation that you have to handle, both of you may have conflicting views regarding the potential solutions. As there is less formality between siblings while talking about something, many times you may feel pressured to surrender to your sibling out of genuine love and respect. Don’t! You should be on the same page despite differences in views while taking business decisions.

The best way to handle this is to open a channel of seamless communication with each other, where you will be free to share your views, no matter the difference. Share and discuss reaching a middle ground, which will be best for the situation at hand. You may bicker like little kids, and it’s completely normal. Just don’t digest anything if you don’t agree with it in the first place. Ultimately, any decision taken should be the best one for your business.

Differences in priorities

Now, the next thing that affects most people running a family business is different and changing priorities. And the way they handle it. Say you are free to take a lot of responsibilities today, but tomorrow, if there is a major event in your life, say marriage or the birth of kids, your priorities are likely to change. You may give as much time to the business as you did before. In that case again, the best way to avoid conflicts is by talking with your respective partner(s) and create a definite schedule. Chalk out timings when you can take responsibilities together and when individually. Also, discuss which sectors you are going to handle and how.

Then again, if you are running a business with your parents, you have to consider certain things, like adequate breaks, medical conditions (if any), and of course, the time for retirement. Let’s say you run a business with your wife, who is about to give birth and wants to take a complete leave for a few months. Both of you should plan for at least one financial year in advance – how you will run the business, take decisions in her absence, whether you will hire some temporary workers, who to give the responsibilities, etc. The primary aim is to combine your energies and vibrate together, thus moving in the right direction, no matter the different events or priorities in your lives.

Generation gaps

It is equivalent to the differences in priorities, as discussed earlier. While your parents, who are nearing their retirement age, may not be as eager to take certain risks, you, on the other hand, may look at the brighter side of things. You may know exactly what to do to mitigate the risks and move ahead. It is then that you have to convince your parents about your ideas and how you are planning to deal with adverse situations.

Some people face huge issues while executing such plans, especially if other members of the family (and business) oppose them. The rule of thumb is not to lose patience. Hear them out, see what they have to say about the potential risks, and learn why they are being skeptical about it. You can then explain your plans to them and try to convince them about the same. If you keep them in the loop, maybe they will lose their fears and start supporting you later.

Another issue that is caused by the generation gap is the use of technology. We have to admit that previous generations are not that techie as we are. They may even prefer to use conventional methods, while we root for technology. In such cases, we have to be quite patient and deal with the matter positively. As technological advancement and upgrade is a key part of business growth, one should be ready to sail with the wind. If parents, older siblings, or other partners having conventional approaches, don’t feel comfortable with certain technologies, try to make it simpler for them to understand the basics. If you oppose them directly, it won’t be healthy. Ask them to stay updated, at least theoretically, so that they get the processes better.

With proper, one-on-one discussions, you can solve any issue related to generation and knowledge gaps.

Seamless and effective communication

As you can see, effective communication is the key to resolving issues and overcoming challenges in a family business. But it is easier said than done, especially when you are working with your family members. Differences in ideologies, views, priorities, perceptions, risk management, and everything else comes to play. Then again, the discussions go way beyond offices and reach the dinner table, and that’s when most problems arise.

Further, what you can say to your partner in the business may differ from your approach as a family member.

In business, we tend to call each other by our first names, but how comfortably can you do that when you belong to the same family? Like, can you address your father by his first name? And even if you have qualms about it, how are your parents going to take it? Will THEY be comfortable? Hence, you have to learn to keep the two things separate as much as you can. There are different layers of communication and approaches that should be considered while running a family business.

Professional-personal balance

While discussing work at home, one should ensure that everyone is comfortable with it. For example, your kids may not like it, your spouse may think that you discuss work too often and don’t give enough time to the family, and the list of complaints goes on.

Striking a balance between work and personal life is necessary. For a family who runs a business together, the urge to discuss work at home is quite natural, as you have all the important members present. There is no point in delaying certain decisions, right? No! Try not to give in to the habit as it may create problems at home. However, emergencies are always exceptional and can be entertained, if not frequently. You can explain the situation to the rest of the family and take permission before holding a round table conference at home.

One thing that you should keep in mind is, you are not your business, and your relationship with your family members, when you are at home, is not professional. We won’t even suggest addressing your family as a ‘business family’ as most people do. These two things are separate, so keep them that way. When you use the term, you are blurring the lines further, even if subconsciously. Always remember that once you enter the home, you are no more a CEO, a partner, or a shareholder. You are just a brother/sister, a parent, or a son/daughter. There is a thin line, so blurry that most people tend to ignore it. But if you are aware and keep this in mind, everything else will fall in place.

Balancing commitments and accountability

You need to understand this part with the help of an example. Suppose, you are on a vacation with your family, who are also partners in the business. You have to share responsibilities to keep the business running. Company representatives should be able to reach you regarding queries or business decisions that cannot wait for your return. Talk to your family about these things before leaving. By sharing responsibilities, we mean that you should take some time out every day, to handle business affairs.

For example, if there’s a video conference and you are busy spending time with your kids, ask someone else to cover for you. Then again, if there’s an emergency and you are unavailable, let someone else make the necessary decisions after discussing the same with you over the phone. Make sure you return the favor in due time. Sharing such commitments will not only help you enjoy your vacation but also ensure that the business faces no glitches. However, you have to realize the difference between an emergency and something important but not urgent. The latter can be postponed to a suitable time. If you spend your vacation working, it will be exhausting and displeasing to your family at the same time.

How to overcome these challenges efficiently

All the challenges that we have talked about in the aforementioned points can make running a family business increasingly difficult for the members. Discussions may turn into debates, and decisions may be forced. Even if you are patient enough to explain everything to each member involved, certain emergencies need immediate attention, and this is exactly where everything may crash.

The best way to overcome the challenges is to seek advice and assistance from a mentor, or an advisor with more knowledge and experience in bridging gaps and reducing the difficulties in communication between the partners. A third person will be in a better state to understand both parties, analyze their perceptions and help them achieve common ground while executing plans and making important business decisions. Everyone will agree that any conflict can be resolved with the involvement of an unbiased ‘someone', who can see things from outside the circle and gain a better understanding of the situation.

If you have someone like that in your family, well, it is a bonus. But again, a family member, who plays the part of the mentor, will face the same issues in business. Hence, it is always better to do this one thing professionally and hire an advisor, someone with both the knowledge and expertise to help you overcome the challenges of running a family business.

We hope that you found this article helpful. If you have queries, do not hesitate to reach us!

Purdeep & Harjeet Sangha
Business Brothers

P.S. To find out more on how to overcome your challenges, get your copy of our Amazon International Best Seller, “The Complete Man” by going to www.ReviewCompleteMan.com

Having goals is essential for reaching your most important business and personal aspirations. I recommend setting BIG goals because most people end up setting their expectations too low. If you aim big, you're more likely to achieve something big. If you aim small, you’re more likely to aim small.

You should be setting a ten-year and three-year goal so you have an overall plan. Things can change in a few years but at least you have a clear direction at this time. In addition, you should set daily goals because what you achieve on a daily basis adds up to what you achieve long-term. I find that people who are better at goal-setting, are also better at achieving their goals.

However, there is a downside that can creep up on you with your goals if you’re not careful. It happens to many people without them even realizing it.

What Goals Are Good For

Goals are good for creating motivation and desire. I call it the “gap.” It’s the distance or time between where you are and where you want to be. This gap creates tension in your mind and tells you that you need to get up and do something to get what you want. In other words, the gap creates motivation within you.

Chances are that the greater the gap, the more motivated you’ll be. Small gaps create smaller motivation. That’s why I suggest that you have BIG goals. The one caveat is that you must have a certain degree of belief that you can achieve it. You don’t need to believe it 100%. But if you only have a 5% level of belief, you won’t have enough “juice” to get going and keep going.

Essentially, goals do two things: a) they give you a clear direction of what you want b) they help you create the motivation and desire to get there.

The Downside of Goals

Goals are important, but they can also be your biggest challenge if you allow them to be. When goals become obsessions, they can take over your thoughts, emotions and eventually life. There’s nothing wrong with being passionate about your goals. But there is a fine line between passion and obsession. Passion gives you energy to achieve your goals. Obsession can actually take energy away from you and even discourage you.

Being obsessive over your goals can cause you to forget about other areas of your life, like your marriage or family and even your own health. This neglect will eventually catch up with you and cause you more pain than pleasure. If the gap between your current position and future goal is too big, or if you’re not making the progress you’d like, it can become frustrating and cause you anxiety. Being obsessive over your goals can create a life of constantly thinking about the future without living in the present. Many high-achievers face this challenge. Years can go by before they finally realize that they’ve been missing out on life.

If you’re not careful, your goals can be your biggest enemy.

Summary

Goals are needed for you to know what you want, set the course and stay on course to achieve your aspirations. You are far more likely to have the life you have always dreamed of by utilizing effective goals. However, you must ensure that you are the master of your goals and not being controlled by them.

Wish you the very best!

Purdeep Sangha

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