CEO Best Practices: To Sell or Not To Sell (Your Business)

Video transcript: hi this is Brian from CEO mastery with another post I posted something earlier about running your business as though you’re going to sell it even if you’re not and the point being there that a company that is it doesn’t have you at the center of it and that is has a lot of good business practices and it kind of runs like a top on its own with great people great processes great information great strategy great meeting rhythm all that stuff that I call the big six if you have that then you can either sell it or not sell it and if you do sell it you got a lot of money and if you don’t sell it it’s a great company to own so and it’s pretty damn safe so that was that post this post is about you know selling a business if you sell a business you’re never going to be as financially well-off as if you keep it okay I mean think about it if you sell a business you’re making a million dollars a year and you sell it for five million dollars let’s say you get a five multiple we’re just pretty good might even be a four but let’s call it a five all right and then you pay let’s say twenty percent taxes on it so now you have four million dollars to put that on your bank you give it to your financial advisor and they say okay this is great not take out four percent that’s usually what they say take out four percent a year and okay swell so four percent time of four million is a hundred and sixty thousand dollars but wait a minute you are making a million dollars before so that’s that’s not that’s not good now the good thing is you’ve sold it you’ve cashed in you have no risk no worry and in that sense and you know it the risk is down and a little bit the bother is down and unless you know I always mentioned my big six unless you install those business practices across those six pillars then the risk goes way too but there’s still risk when you own a business anything can happen but I just want you to understand the distinction financially it’s like the the big secret or the little lie or whatever you want to call it about selling your businesses you end up with a lot less money but a lot less risk so if you held on to it for another five years you’d make another five million dollars whereas if you didn’t you’d make 160 so a hundred and sixty times five is eight hundred so it’s five million versus eight hundred big difference anyway I hope this was helpful to you have a fantastic day see you later bye