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La
Jolla, California and
Dallas, Texas: Every day the press reports, especially The
Wall Street Journal and Forbes, about how big business acquires small
businesses in order to grow.
If you are running a good business and have market
share in your industry segment, you should consider preparing for that call or
knock on the door -- the result could put John Beresford Tipton to shame.
(Remember the '60s TV show, "The Millionaire" where a multi-billionaire
gave out one million dollars each week?)
In most every episode of this show we explore how
and why the founder of a business gets started and how they get over the
hurdles. This week we look at how they received a very large check for the
fruits of their labor.
Today, we spend time with Tracy Myers and Gary
Cantor, the founders of Advertising Arts College, and Bob Orenstein, founder of
International Wine Accessories (IWA). Both have completed all
eight
steps within the business cycle, and they define what it means to "Exit At the
Top." You met Bob a couple of years ago when we did his story about
starting
IWA from the extra bedroom of his
townhouse.
Both stories are important.
Gary and Tracy's story is for all of us who are
not even thinking about selling, then there comes a knock on the door.
Bob's story is for the rest of us who know that we
have created a susbtantial asset. Bob, however, knew that his "time" was
coming. Bob was strategic and spent several years getting ready for the day,
and then it took over four years to consummate a deal.
To say the least, every one of us should have an
exit strategy.
The question for all of us, even if you are in the
first step of starting, is "How is this all going to end?" Over 70±% of all businesses fail to transfer to the next
generation. But that does not disclose an even more dismal statistic: 70±% of all small business startups fail within their
first year, and then unknown quantities* fail every year
thereafter.
There has to be a better way!
Working together, learning from the best among us,
we can stem the growth of negative numbers and open ways to increase the
positive. Let's see if we can help build a better business infrastructure that
causes more businesses to reach sustainability. Just think about how our
quality of life would improve if more small businesses made it -- really made
it to sustainability -- and could more readily and abundantly support their
communities and families. |
