Follow Dallas Linkedin
Email Dallas Email
Financial
Sep 1, 2017

Setting Goals Is Important, Even If They Change

Sponsored Content provided by Dallas Romanowski - Managing Partner, Cornerstone Business Advisors

Setting goals is critically important to owners who begin exit planning.

Without goals, even the strongest processes fail, because they have no purpose to work toward. Your goals are what guide your process toward a successful exit, and without them, you’ll find yourself spinning your wheels in the mud of indecision.

While setting goals is the most important thing you do as you begin your business exit journey, it doesn’t mean that you have to know exactly where you’ll end up after you exit your business. Goals can - and often must - change to give you the best chance to exit your business on your terms.

Business exits are rarely all-or-nothing propositions. Having the foresight to set actionable goals combined with the flexibility to change them when necessary gives you the freedom to pursue your vision of a successful business exit.

Let’s look at three reasons why setting goals is so important, even though they might change.

  • Setting goals establishes your target. Setting goals allows you to establish a target that defines what a successful exit looks like for you, your family, and your business. By establishing the why behind exiting your business, you can discover how you can get to that point, giving you a reason to pursue those goals and putting yourself on the path toward Exit Planning success.
  • Setting goals provides a road map. Setting goals helps you develop a road map for how to achieve your goals. Knowing the terrain that stands between you and a successful business exit gives you the chance and confidence to properly prepare for the journey. This takes much of the initial anxiety about exit planning out of the equation by showing you that you can achieve your goals if you take the first steps toward approaching them systematically. Like an adventurer crossing the country on foot, you need to have a general idea for where you want to end up so that you can bring the appropriate tools and follow the best path to get there. Setting goals also helps you track where you are on your journey toward exit planning success. Having an appreciation for where you are on the path toward your exit goals can encourage you to stay the course when times are good and refocus if things get bumpy.
  • Setting goals addresses conflicts before they do damage. A common mistake owners make when setting goals is assuming their goals will mesh smoothly with their overall plans. However, goals can conflict with one another, and sometimes, those conflicts can derail even the best-intended exit plans. This is where the concept of flexibility plays an important role. Say you wanted to sell your company to a third party in five years for $5 million. Five years go by, and you find a buyer willing to pay you $5 million, but with some caveats - the buyer is shutting down local operations, will lay off all of your employees with no severance, and your brand name will be absorbed by the buyer’s conglomerate, never to be spoken of again.
While this example may seem extreme, many owners find that as they begin the process of exiting their businesses, some of their goals don’t jive with each other. Fortunately, our exit planning process accounts for situations like this by giving you a template for setting goals: establish your foundational goal (exiting with financial security); your baseline goals (exiting when you choose, exiting for the money you want, and transferring the business to whom you choose); and any number of value-based goals (e.g., keeping your legacy alive, keeping the business in your home town). Setting goals early lets you find and address conflicting goals, dramatically improving the probability of both resolving them and exiting successfully. Knowing your goals allows you to see when they are in conflict and make an informed decision about which to keep and which to change. 

If you’re unsure which goals are most important to you or whether your goals are realistic, contact us today. We can help you begin the process of identifying, prioritizing, and achieving your goals.

© Copyright 2017 Business Enterprise Institute, Inc. All Rights Reserved
 
As a member of the Business Enterprise Institute (BEI), Cornerstone Business Advisors is an authorized distributor of BEI’s content and Exit Planning Tools.

The Cornerstone team includes former C-Level executives, successful entrepreneurs and advisers who offer unmatched experience in delivering advanced, custom-tailored, results-oriented solutions for business leaders. We developed the Performance Culture System™ to help clients implement best practices and drive high performance throughout their organization. For more information, visit www.launchgrowexit.com, call (910) 681-1420 or email [email protected].
 

Other Posts from Dallas Romanowski

Bizjournalblockad
Ico insights

INSIGHTS

SPONSORS' CONTENT
Jeff metrocopy

Public Adjusters are Your Advocates After the Storm

Jeffrey Feldstein - Metro Public Adjustment
Webilm julieformal kellystarbuckcom mg 5471

Business is Growing at the ILM Business Park

Julie Wilsey - Wilmington International Airport
Burrus rob headshot 300x300

The Rise of Artificial Intelligence: What Does It Mean for Our Region?

Robert Burrus - Cameron School of Business - UNC-Wilmington

Trending News

VentureSouth Starting Wilmington Angel Investment Group

Johanna Cano - Apr 23, 2019

Local Boat Slip Marketplace Startup Wins NC IDEA MICRO Grant

Johanna Cano - Apr 24, 2019

Coastal Carolina Curling Club To Slide Into Own Facility

Johanna Cano - Apr 22, 2019

First New-Panamax Ship A Harbinger Of More Business For Port Of Wilmington

Jenny Callison - Apr 23, 2019

Analysts Expect Live Oak Bancshares To Report Lower Q1 Revenues

Jenny Callison - Apr 24, 2019

In The Current Issue

Tackling A Lag In Housing Starts

Housing starts dropped last year in New Hanover County, due in part to Hurricane Florence, and challenges remain even as permits have recent...


Info Junkie: Dan Brawley

Info Junkie Dan Brawley, executive director of Cucalorus, on his tech and app recommendations....


Hamilton Looks To Redefine The Entrepreneur

Entrepreneurship isn't limited to a select few, says Brian Hamilton, co-founder and CEO of Sageworks, who has been spreading that message i...

Book On Business

The 2019 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2019 WilmingtonBiz Expo Keynote Lunch - CEO, nCino, Pierre Naude`
Transporting the Future - Power Breakfast 3.12.2019
Health Care Heroes 2018