Exit Planning: Getting Started
- A large part of personal wealth, 50% to 90%, is often tied to the child care business and real estate.
- The value of a child care business is illiquid wealth, not easily converted to cash without impacting its value.
- The process of selling a child care business can take months or more than a year to complete.
- Consider how and when you will convert your business value into liquid assets for future financial security.
- Proactively enhance business profitability and market value to ensure a successful transition and maximize your overall wealth.
Whether it is that back deck you have wanted to add to your home or the new program you have contemplated adding to your childcare business for years, often the hardest step is the first step – just getting started on the project. However, procrastination is a stumbling block for many of us.
When it comes to exit planning, one of the most significant barriers is procrastination, just like with a big home improvement project or new program development in your childcare business, procrastination delays starting and limits progress.
Many childcare business owners are so focused on daily operations that they neglect long-term planning. The idea of someday leaving their business, something they may have built from the ground up, can be emotionally challenging. Procrastination provides a distraction and more time to avoid the emotional stress associated with thoughts of someday no longer being the owner of a childcare business.
Childcare business owners often delay exit planning because it seems overwhelming or because they feel there’s plenty of time. However, starting early provides numerous advantages. First, it allows for a thorough assessment of the business’s strengths, weaknesses, and value. Early planning gives owners time to address financial, legal, and operational issues that could affect the business’s value.
Exit planning is a vital process for any business owner considering the future and eventually transitioning out of their business. Whether the goal is to sell, pass the childcare business to family members, or close operations, the journey toward a successful exit can be complicated and lengthy. Among all the steps involved, getting started is the most crucial.
However, childcare business owners often do not take that crucial first step and procrastinate for decades. Waiting too long can lead to missed opportunities, rushed decisions, and often reduced childcare business value.
Getting started is about overcoming the hurdle of procrastination. Even small steps can create momentum. Once the process begins, it’s easier to stay committed and make consistent progress.
Early action also opens more options. Childcare owners can explore different exit strategies, prepare for unforeseen circumstances, and ensure their personal and professional goals are aligned with the plan. Starting early makes the process less stressful and more manageable.
We invite you to join us in February for our specialized online workshop – Exit Planning For Childcare Business Owners. Let the Exit Planning Experts at ChildCareOwner help you overcome procrastination and take that “first step” to creating an Exit Strategy!
Join us for an upcoming Child Care Business Owner Exit Planning Workshop – Online. Learn More
