SMALL BUSINESS SCHOOL
Pathways and steps to building a business
Small Business School  last update: June 2005  |   view the current episode Small Business School
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Step 7- "Sustainability" Small Business School
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"The business just about runs by itself!"

The beginning of "sustainability." But the question now is, "How do I keep growth under control?"

And that question keeps nagging you, "Should I finally take some real income or push even more money back into the company?"

"Like a gazelle" Those growing fast (over 30% per year) have special problems: Controls, people, interruptions, money, long-range plans. Because you have a track record, everybody wants a piece of the action. Every bank wants to loan you money. You have choices.

And, the biggest choice you have is how you ride this business into your sunset, and how you prepare it for the next generation. It is time to look at your equity/liquidity model and exit strategy:

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ESOP    DPO     IPO     SCOR

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To think about money immediately, click on the $$$$ in the box above, or those four liquidity models. It has been said that most businesses begin to peak when the founder-owner is between the age of 50 and 60. Then the business, sometimes stuck in its ways with no leadership in position for the future, begins to lose market share and tumbles slowly down, assets, value and all. Fewer than 30% of all businesses make it beyond the transition from the founder-owner to the next generation. That terrible statistic has to change.

You move on to Step 8 when you have had over 100 employees for two years (or over $10M in revenue for three years). In either situation you ready to consider how to Exit At the Top.


I'm not ready to exit yet, let's continue on...
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Get on your path and focus on the next step.
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Key Questions Small Business School
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1. The four most basic questions you can ask yourself, "Who am I? Where did I come from? Where am I going? And what is the meaning and value of life?" are now just as relevant as they were in your college days. You have choices. And focusing on the fundamentals of your business is now as important as it was in the beginning. Do you have that knowledge management system in place? How would you value your business?

2. There are only four facets of your business: Your basic knowledge of your business, your unique past, the dynamics of your present moment, and the depth of your projections for your future. The basics are best represented by your business model and business plan. Your past is best represented by your financials. Your present is best understood by your key critical ratios at the day-end closing. Your future is best understood by looking at the equity-liquidity model and your exit strategy. What do you have in place?

3. Do you know your options? Which equity-liquidity model is best for both you and your business?

4. Does your exit strategy include a path to the end of your life?

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