You haven’t suffered enough, is that why you won’t change?
What about making money when the business is sold?
When you tell people that 60% of business owners would make more money if they had jobs, many say this is OK because they will make their money when they sell the business.
I rang a number of business brokers and asked what percentage of people, sell their business for the type of premium that would make up for the years of working at reduced wages.
On average I was told up to 70% would get much less than expected. This is shattering for those approaching retirement who have invested very little in superannuation or anything else except the business.
One very experienced broker told me that 90% of the businesses he sees aren’t even saleable. He often gives advice on what people should do to improve the value of their business but by the time they have decided to sell, they don’t have the interest, desire or energy to reinvent the business.
So what is the greatest motivator for a business owner to change?
From this anecdotal research, only 7% of business owners earn more that they could as an employee AND sell their business at a premium. But for some reason this is not enough to make people change how they are running their business.
I am afraid from my experience that in the majority of cases it is only a good old dose of pain and suffering that will work. You can’t help anyone until they get to this point. The greater the suffering, the more willing people are to ask for help, learn from their mistakes and eventually make the changes needed.
I just hope that John does something before it is too late and he becomes another statistic.
Andrew Vincent is an experienced business coach and was the creator of the Channel 9 television series Your Business Success. Over 80 of the best episodes have been re-edited into business improvement program supported by a set of easy to follow workbooks and FREE business coaching. Go to www.yourbusinesssuccess.com.au to find out more.