At Trilogy Partners, we often talk with business owners about the key considerations they need to make when they transition ownership of their company to one or more people, or to another company. However, there is an alternative to selling your ownership interest: You can systematize its operation so that employees can run it “on autopilot,” meaning that you will no longer need to steer it on a daily basis.
Putting your company “on autopilot” allows you to put off selling if you’re not yet ready to fully retire, and it expands your options for selling your company on better terms. For example, perhaps none of your employees stand out today as the obvious choice to become the new owner. However, in 3-5 years, personal growth and increased self-confidence can change that picture.
A few decades ago, Michael Gerber wrote “The E-Myth,” a book about systematizing businesses to make the owner’s life a lot easier, while increasing both profit and sales. The concept was popular with owners who wished to get top dollar when selling their business because turnkey businesses, where the buyer doesn’t need the seller to stay on an employee, are worth more.
The most difficult part of being an absentee business owner is that you must work yourself out of your job as the “face of the company” and allow others to step up and take over. You may need to hire a new leader if you can’t cultivate one of your employees to do it, because not everyone wants to be the leader, and most people aren’t wired for it. If you’re going to step all the way out of your business, you may have to develop or hire two leaders: one who is a visionary who can grow the business and develop new markets and large customers, and another who is the integrator who manages the daily operations.
Get Professional, Experienced Help
Trilogy Partners helps business owners to sustainably maximize their cash flow while they back out of their business, either to sell or enjoy owning from a distance. The main thing you’ll need to do is to allow us to help you step away in a planned fashion. That’s easier said than done for most owners, so that’s where we enter the picture: unlike other consulting firms, Trilogy Partners doesn’t prescribe recommendations and then leave you to make it all happen. Instead, we partner with you long enough to ensure that the implementation is sustained.
If you are considering a future ownership transition or if you would like to explore how to become an absentee owner, please contact us at firstname.lastname@example.org.