We often hear phrases like, “No risk, no reward,” when it comes to starting a new venture.

But when it comes to exiting your business, more risk means LESS REWARD.

Mitigating risk can improve your business value because valuations are based (in part) on the real and perceived risks from the buyer’s perspective. Meaning, the more risk in your business, the more money you’ll leave on the table.

So what types of risks are we looking to reduce – thereby helping you increase value and better protect the people you care about?

We’re going to break these down into 3 categories – Personal, Financial, and Business

De-risk Personally

Person risks are situations that could come up if you can’t be present in the company in the ways you normally are. If the business is totally or largely dependent on you, these disruptions could dramatically impact the future of the company and your ability to provide for yourself and your family.

These risks include:

· Death

· Disability

· Divorce

· Health challenges

· Accidents

· Family tragedies

Do you have the team and systems in place to operate without you? Do you have ready-to-implement plans if you need to exit the business?

De-risk Financially

For most business owners, their net worth is tied to the health of the business. This can present numerous challenges, including if you’re part of the 80% of business owners who don’t successfully sell (aka – you miss out on a major liquidity event to fund your lifestyle and the next great chapter of your life).

These risks include:

· Market risks

· Diversification

· Personal loans/debts

· Personal lawsuits

· Loss of earning power

· Long-term Care

A business owner not only faces the challenges other individuals face when it comes to securing the retirement income they need, but you also must figure out how you are going to harvest value from the business strategically.

De-risk Your Business

No surprise to you as an entrepreneur, there are many moving parts in your business. These present both opportunities as well as challenges to overcome and eventualities to prepare for.

These risks include:

· Customers

· Key people

· Business interpretation

· Economy

· Distress

· Partner disagreements

· Environmental/safety

· Technology/machinery

· Owner dependence

· Data/information

· Compliance/Legal

· Loans/debt

By understanding the risks we face and taking action to mitigate them, we reduce the harm they could bring and increase our value in the process.

How are you reducing risk in the personal, financial, and business aspects of your life?

Ready to reduce risk and increase your business value?

It all starts with an assessment of your business and life.

Get started with a FREE call with our Scale to Sell team. It’s a no-charge, no-obligation way get started winning at WORK AND LIFE!

www.scaletosell.com/discovery

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