The Way You Exit Matters
Welcome to theDailyBlunt, today is Tuesday August 29th, and probably will be all day
Today we’re talking about something very important that can often be overlooked in the process: exiting.
The Way You Exit Matters
Do you want to know one most frequent mistakes we see business owners make in their exit strategy? It’s not getting help from outside the company when they need it.
We thought we would look at an example that we see all too frequently in this industry, so you can plan for a different outcome before it is too late.
Let’s say you are a business owner but things just aren’t going as you hoped. After a year of struggling, you decide there are better opportunities and want to sell the company. This is a hard to decision to make, I know. Part of you feels like you are failing by not following this dream all the way through. I mean, you were going to get into this business for the easy money, but the easy money never came through.
We talk a little bit about this phenomenon – what we like to call the “green gold” era of the cannabis industry in a previous issue of theDailyBlunt. Check out the link down below to view all previous issues.
However, the logical part of you knows selling is a better decision financially. In a perfect world, you’re selling sooner than later, however it took you a while to come to this decision – after all it was your dream… but dreams don’t always keep the lights on.
Selling your own company is a hard thing to do emotionally. Instead of dealing with it yourself, you decide that the managing partner who is at the site every day can be the point of contact instead. I mean, he’s the guy who knows everything inside and out anyway… it seems like he is the best candidate for the job.
Can you spot the mistake in that previous paragraph? The whole thing is a bad idea, but this is something that you might miss as an owner who may be in a rush to get out.
As a business owner wanting to sell, you already made up your mind it is time to get out.
But the onsite manager working in the day-to-day, the last thing that guy probably wants is to be out of a job.
People are funny that way. It is almost like the guy on the floor would rather have the certainty of coming to a failing business everyday rather than having to go find a successful company to work in and start over. Weird, right?
See, the business owner wants out. The guy on the ground wants to keep going. He has all these ideas for improving the company and making it more profitable. All you have to do as a business owner is find the money to buy this new piece of equipment. Or, find the money so you can hire that extra staff for packaging. Or, find the money so you can get a true sales team together. You get the idea.
Whatever the excuse is, there will always be a conflict when it comes to selling between the partners who don’t work in the day-to-day and those that work on the ground.
So, what is the solution?
Hire a professional. Not one of those fly-by-night consultants. A true professional. A broker who is experienced in the industry and who you will also give full access to your company workings so they can get it sold. As counter-intuitive as it is, you can’t have the guy on the ground making the decisions for your future. Subconsciously, he’ll always choose himself.
Do you need a true professional to help you through? If you meet our criteria, CannaLocations is happy to assist with your needs on a brokerage basis. If not, we are happy to pair you up with a good resource for your specific location too. Give us a call at (206) 466-4020 or