More and more remodeling company owners are getting older and looking to transition out of their businesses. This transition requires a great deal of thought and planning. In that light, the important question is are you controlling this process or is it controlling you?
I am thankful to have helped design this transition for a number of remodelers, and the next chapters in their lives have been amazing while the businesses they once ran continued to thrive.
The following are a few tips and insights that may be helpful. These apply to anyone since in life transitions are inevitable.
1. Ask yourself, ”How do I want to feel in five or 10 years?” If you can articulate the desired feelings—for example health, freedom, and financial security— it will be much easier to design your road map. Also ask yourself “What do I need financially to make that happen?”
2. Start early. I would suggest beginning serious reflection at least 10 years in advance of a transition, and putting things in place five years out.
3. Rewire don’t retire. I love this theme, especially in remodeling. For most people, the image of clipping coupons on the beach while in retirement is not very attractive. I am more fulfilled and busier now than when I was running a business. It also can be more financially rewarding in the rewired phase too.
4. Who is going to fire you? The thought of being fired may feel a little disturbing at first, but it is a critical part in this process. Identify two or three individuals on your team, and begin investing time to see which one can step up to eventually take your seat.
5. Trade time for money. While you are figuring this out, you might want to plant seeds for the things you want to do in the next chapter of your life— consulting, speaking, new business opportunities, etc. This groundwork will take time, and this is time you might not be able to spare in your business today. To accommodate, you may need to shed some of your present responsibilities. I would strongly suggest paying others more in your company or bringing in some additional help to free up time for making future plans. Begin by taking an extra 10 hours a week to devote to transitions.
6. Seek help and advice. There are many advisors who can help answer questions and provide guidance. There are also many remodelers who have gone through this process (some successfully and others less so). Carve out time and have some meaningful conversations. Focus not only on the successes, but also on mistakes to avoid. The remodeling business is unique, so I would suggest speaking to advisors or peers with remodeling transition insights and experiences.
7. Selling the business. Remodeling companies can be successfully sold, however, many business leaders end up just closing their doors. (There are a number of reasons for this.) If you start early enough, educate yourself, and look at other models for inspiration, you should be in a position to see a financial return from all of your years of sweat.
I will close with this thought: Transitions can be good or bad. They can push you backwards or propel you into the life you want. It is a choice. Choose to have an amazing passage and next chapter. You deserve it
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