While I do plan to start this business out with my community bank as my first customer, once it grows, I don't think it will be "family business" material. I have other interests and aspirations that match that bill much better, so I do plan to sell the business after five years or so.
That will be a good time to exit because by then, I anticipate having grown the business quite a bit, and it will be better to hand it off to a group or company that want to manage a larger work force than what I feel comfortable managing, since I'll have a family starting at home.
I don't think that it will SLOW my growth decisions, because it will basically be a goal to grow the business to a point where I need a group of 10+ people, and a larger managing firm. If it was to the point of being sellable before the 5 year mark, then I would take my money and run. I've always been very family focused, and I'd rather have these younger years to spend with children and pursuing land and agriculture-related business ideas. I'm also not into the professional environment that comes with banking, so it will be a relief to relax that façade I will have put on.
Hi April,
ReplyDeleteI think it's awesome that you have this plan outlined very specifically. A lot of times, people don't know what they want or how long they want to be in the business for, and I think it's great that you are able to determine a selling point and where the company needs to be before you can sign off on it. It's also great that this won't impede your growth progress.
April:
ReplyDeleteFor your exit strategy, I think that you could not have put it better. If there is one thing that I have learned from years in the work force, it is that family should come first. They will be around long after your leave the work force, hopefully. I also do not see my business idea being a pass-along to another family member. And that is ok. Like you said, “take the money and run.”